Welcome to September's Tax Tips & News. We hope you have all been enjoying what may be the last few days of summer. 

This newsletter brings you tax tips and news to keep you one step ahead of the taxman. It also provides some important updates about Blackman Terry and our team. Any questions, please get in touch.

We would like to welcome all the new clients who have joined us in the last month.  

Another Million savers to be hit with tax on interest 

The frozen Savings Allowance combined with rising interest rates will push over one million taxpayers into paying tax on their savings this tax year, according to research by investment platform AJ Bell.

In the 2023/24 tax year it is estimated that over 2.7 million individuals will pay tax on interest, up by a million in a year.

This year's predicted total includes nearly 1.4 million basic rate taxpayers, a figure which has quadrupled in just four years, AJ Bell's research found.

Individuals pay tax on interest they earn on savings that exceeds the personal Savings Allowance, which currently stands at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers get no exemption and pay tax on all interest they receive.

Latest guidance for emplyers

HMRC has published the latest issue of the Employer Bulletin. The August issue has information on various topics, including:

• tax relief on employee contributions to registered pension schemes
• ceasing your PAYE scheme
• the National Minimum Wage
• helping customers steer clear of tax avoidance schemes
• income tax self assessment - preparing for the new tax year basis
• helping your new employees get paid correctly
• tackling non-compliance in the umbrella company market.

HMRC Should increase rewards for whistleblowers, says law firm

HMRC should increase the rewards it pays out to whistleblowers in line with the US system, according to law firm RPC.

The tax authority paid out over £509,000 to individuals providing evidence about tax fraud over the past year, RPC's research found.

That figure is up from £495,000 in 2021/22 and a 75% increase from the £290,000 paid five years ago, the law firm added.

However, it is just 1.7% of the sum paid to informants by the US Internal Revenue Service (IRS).

The IRS pays whistleblowers 15-30% of the additional tax collected through investigations instigated as a consequence of information received. In 2022, $37.8 million was paid by the IRS to 132 whistleblowers - 58 times the amount paid to UK whistleblowers.

Adam Craggs, Partner and Head of RPC's Tax, Financial Crime and Regulatory team, said:

'More individuals, with evidence of serious tax fraud, would come forward if they knew they could be in line for a life-changing amount of money.

'Paying a proportionate amount for high quality information that helps secure criminal convictions and the recovery of substantial amounts for the Exchequer would be a sensible step. HMRC has been making payments for information on an ad hoc basis for many years and would benefit from improving the system and placing it on a more formal basis.'

The Blackman Terry tax investigation scheme

The Blackman Terry tax investigation scheme runs from April 1st 2023 to March 31st 2024. In case you missed our original mailer but are interested in ensuring your defence costs are covered in the event of an HMRC investigation, please get in contact: enquiries@blackmanterry.co.uk

If you subscribe to our tax investigation package, we can help from the moment the enquiry letter arrives.

It will protect you from the fees and allow us to:

Check HMRC is entitles to investigate the tax return selected and challenge them if not
Ensure the tax inspector only asks for relevant information and documents
Respond to telephone calls, emails, letters, compliance fact sheets and notices issues by HMRC
Provide supporting information from our files relating to when your accounts were drawn up
Prepare for and attend face to face meetings with the tax inspector
Argue any complex or technical tax cases raised during the enquiry
Handle any settlement negotiations all the way through to a successful conclusion
We recommend that all our clients subscribe to this service as the cost for tax investigation protection is a fraction of the typical defence costs.

For information and prices, please click here. 

Balckman Terry factsheet

This section contains a wealth of useful business, tax and financial information - contact us for help and advice specific to your circumstances, or click on the following links for more information:

• Business start up 
• Capital taxes
• Corporate and business tax
• Employment tax
• Employment issues and regulations
• General business issues
• Personal tax
• VAT

Government launches Business Climate Hub

The government has launched the UK Business Climate Hub to offer firms advice and support on reducing their energy bills and cutting their carbon emissions.

The Hub includes a free carbon calculator and a suite of new tools to help businesses measure, track and report on their emissions.

It also offers detailed advice on topics, including sourcing products from green suppliers and reducing emissions from freight and logistics, as well as the most cost-effective ways of installing solar panels and electric vehicle (EV) charging points.

The Hub is aimed at SMEs, which the government says are often keen to tackle climate change but find it difficult to know how to reduce their carbon footprint.

Minister of State for Energy Security and Net Zero, Graham Stuart, said:

'The UK has cut its emissions more than any other major economy in the world. More and more businesses are recognising the business benefits of reaching net zero and we're determined to empower them to do so.

'The new UK Business Climate Hub is a one-stop-shop for businesses to find practical advice to reduce their carbon footprint and save on their energy bills.

'Whether it's fitting a low-carbon heat pump, generating energy with solar panels, or reducing the emissions from shipping goods, the new support will ensure businesses can drive towards net zero.'

September Key tax dates 

September 2023

Tuesday 19 PAYE, Student loan and CIS deductions are due for month to 5th September 2023

Is this relevant to you?

This deadline is relevant to employers who have made PAYE deductions from their employees' salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd September 2023. Interest will be charged if payment is made late. Penalties also apply.

October 2023

Thursday 5 Deadline for notifying HMRC of new sources of taxable income or gains or liability to the High Income Child Benefit Charge for 2022/23 if no tax return has been issued

Is this relevant to you?

This deadline is relevant to individuals who have not received a self assessment tax return for the year ended 5th April 2023 but who believe they have received income or capital gains which will result in a tax liability. This deadline is also relevant to individuals who are liable to the High Income Child Benefit Charge.

Individuals must notify HMRC of their liability so that a self assessment return can be issued in good time for the submission deadline of 31st January 2024.

If we have already dealt with this matter on your behalf you need take no action.

Thursday 19 PAYE quarterly payments are due for small employers for the pay periods 6th July 2023 to 5th October 2023

Is this relevant to you?

This deadline is relevant to small employers only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.