Tax returns Archives - WRLO Accountants

ICAEW encourages taxpayers to sign up to Making Tax Digital

WRLO Accountants — Sun, 17 May 2026 07:23:41 +0000

Taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from April 2026 should sign up now if they haven’t done so already, says the Institute of Chartered Accountants in England and Wales (ICAEW). Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD for Income Tax from April 2026. More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so. HMRC estimates that approximately 864,000 taxpayers are required to use MTD for Income Tax from April 2026. The ICAEW says that approximately only 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily. The Institute said: ‘ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.’ Internet link: ICAEW website

The post ICAEW encourages taxpayers to sign up to Making Tax Digital appeared first on WRLO Accountants.

HMRC cuts late payment interest rate to 8%

WRLO Accountants — Mon, 25 Aug 2025 16:13:34 +0000

HMRC will reduce late payment and repayment interest rates from 27 August following the 0.25% cut in the base rate earlier in the month. The Bank of England cut the base rate to 4% on 7 August, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 27 August, the late payment interest rate will be cut to 8.0% from 8.25%. The repayment interest rate will be cut to 3% from 3.25% from 27 August. HMRC late payment interest is set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Following the cut to the base rate, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: ‘The small business community will now look to lenders to reflect this rapidly across their offering, cutting the cost of finance. They will also want to see the Bank of England set out a clear path for the rest of the year, with a further easing in the base rate badly needed to reduce the financial strain they are under. ‘There will be no growth in the economy overall […]

The post HMRC cuts late payment interest rate to 8% appeared first on WRLO Accountants.

HMRC targets personal expenditure on self assessment

WRLO Accountants — Mon, 25 Aug 2025 15:48:42 +0000

HMRC will run a digital campaign to ensure that self assessment taxpayers do not claim tax relief for personal expenditure on 2025/26 tax returns, according to the Institute of Chartered Accountants in England and Wales (ICAEW). HMRC has told the ICAEW that the digital campaign follows a trial in 2024. This trial generated over £27 million in tax revenue and ‘highlighted reporting of disallowable private use in business expenditure’. HMRC says that it will be opening more enquiries to check that sole traders, partners and landlords only claim deductions for business-related expenses. This includes ensuring that mixed use expenses are apportioned correctly between business and personal use, which considers the circumstance of the particular tax year. The legislation states that in order for an expense to be deductible, it must be ‘incurred wholly and exclusively for the purposes of the trade’. Where an identifiable part of an expense is incurred for trade purposes, that part of the expense is an allowable deduction. It is important that the method of apportionment used is: supported by records (eg, mileage records); and applied consistently from one tax year to the next. It must also be the case that the expense is not capital […]

The post HMRC targets personal expenditure on self assessment appeared first on WRLO Accountants.