hmrc 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

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HMRC cuts late payment interest rate to 8.25%

WRLO Accountants — Tue, 20 May 2025 09:11:52 +0000

HMRC will reduce late payment and repayment interest rates from 28 May following the 0.25% cut in the base rate last week. The Bank of England cut the base rate to 4.25% on 8 May, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 28 May, the late payment interest rate will be cut to 8.25% from 8.5%, which was the highest rate charged since February 2000. The repayment interest rate will be cut to 3.25% from 3.5% from 28 May. 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 David Bharier, Head of Research at the British Chambers of Commerce said: ‘Many firms, desperate for financial respite, will be keen to see further rate cuts in the months ahead. ‘National insurance hikes, alongside other cost pressures, are already having an impact, including increased prices, hiring freezes, and reduced investment. ‘The next few months are likely to remain volatile and the full impacts of a global trade war are still uncertain. Businesses will be […]

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HMRC launches new online help for compliance checks

WRLO Accountants — Fri, 09 May 2025 07:48:29 +0000

HMRC has launched a new online interactive tool to help guide both businesses and individuals through tax compliance checks. The Interactive Compliance Guidance tool available on GOV.UK provides information to help customers understand: · HMRC compliance checks. · Why HMRC has requested specific information or documents. · How to request extra support due to health or personal circumstances. · How to appoint someone to act on your behalf. · What to do if you disagree with a decision made by HMRC. · How to pay a tax assessment or penalty. The new tool brings together existing compliance guidance and videos in one place, making it easier to find and navigate the appropriate information, HMRC says. Joanne Walker, Low Incomes Tax Reform Group (LITRG) Technical Officer and Customer Experience Advisory Group (CEAG) member, said: ‘When unrepresented customers have a tax compliance problem, it can be difficult for them to find the help they need. ‘This new interactive tool from HMRC makes compliance guidance readily accessible in one place, and easier for people to find the information that […]

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