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News - 18 October 2024

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Accounting News - 18 October 2024

In this week’s Enews, we look at the actions the Confederation of British Industry wants to see the Chancellor take at the Autumn Budget. There is also news on paper tax returns and State Pension top ups to update you on.

Photo by Colin Moldenhauer on Unsplash

Budget will be 'pivotal moment' for new government

The Autumn Budget will be a 'pivotal moment' for the new Labour government as it aims for sustainable economic growth, says the Confederation of British Industry (CBI).

In its Budget submission, the business group says the task ahead is not without its challenges given the current economic and fiscal constraints.

The CBI says the key to delivering growth will be unlocking the levers to investment that let business move forward with confidence and certainty.

At the Budget, the CBI wants to see the Chancellor take the following actions:

  • Boost productivity and investment via a more flexible Apprenticeship Levy as a first step towards the Growth and Skills Levy.
  • Expand the Made Smarter Programme enabling digital adoption to support a skilled, reliable workforce.
  • Build confidence in the transition to net zero by utilising tax incentives to drive investment into high-growth green technologies.
  • Bolster business certainty with a Business Tax Roadmap alongside long-term business rates reform.

Rain Newton-Smith, CBI Chief Executive, said:

'The Budget can provide a tone setting moment in the government's growth mission that can demonstrate to markets, investors, and businesses that the UK has a credible plan for boosting its growth trajectory.

'We recognise the Chancellor is walking a fine line with limited fiscal headroom. While we cannot risk the economic stability that is the bedrock of growth, we must be ambitious in our vision with government laying the foundations for a prosperous future.'

Internet link: CBI website


HMRC agree to make things easier with paper tax returns

HMRC’s decision to make it easier for taxpayers to file a paper tax return has been welcomed by the Low Incomes Tax Reform Group (LITRG).

With less than a month until the 31 October deadline for filing a 2023/24 paper self assessment tax return, HMRC have confirmed to LITRG they will accept copies of the tax return form that have been downloaded and printed from GOV.UK.

Until recently, the 2024 form on GOV.UK had been marked ‘For reference only’ and HMRC indicated they would only accept a paper tax return form if it had been specifically issued by them and sent to the taxpayer by post.

Following concerns raised by LITRG, HMRC have now agreed to relax their position and have confirmed they will accept forms printed from GOV.UK.

It means some taxpayers wishing to file a paper return ahead of the 31 October 2024 filing deadline will be able to do so without needing to call HMRC to ask them to post out a copy.

Antonia Stokes, LITRG Technical Officer, said:

‘We understand HMRC strongly encourage people to file their tax returns online, but this is not always possible. We have always been clear that HMRC should not try to make things harder for those who have no option but to file on paper. Though late in the day, this is a step in the right direction, and we are pleased that HMRC have listened to – and acted on - our concerns.’

Internet link: Chartered Institute of Taxation website


10,000 boost State Pension with online payments

More than 10,000 payments worth £12.5 million have been made through a new digital service to boost people’s state pension, HMRC has revealed.

People have until 5 April 2025 to maximise their state pension by making voluntary National Insurance contributions (NICs) to fill any gaps in their NICs record between 6 April 2006 and 5 April 2018.

The service enables people to check if they have gaps in their NICs record, calculate if making a payment would increase their state pension, and then make a payment if they wish to do so.

HMRC data shows:

  • 51% of taxpayers topped up one year of their NICs record
  • the average online payment is £1,193
  • the largest weekly State Pension increase is £107.44.

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous six tax years, in line with normal time limits.

Emma Reynolds, Minister for Pensions, said:

‘We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.’

Check your pension here.

Internet link: GOV.UK



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