In this week’s Enews, we look at HMRC’s warning for the millions of taxpayers yet to file their self assessment returns. There is also news on EU trade relations and warnings about the government’s employment plan from small business to update you on.
News - 10 January 2025
5.4 million yet to file their self assessment tax return
With less than a month to go 5.4 million taxpayers still need to complete and pay their self assessment and avoid penalties, HMRC warns.
Anyone required to file a tax return for the 2023/24 tax year who misses the 31 January 2025 deadline could face an initial late filing penalty of £100.
Thousands of taxpayers have already done so by completing their tax returns before the fizz was barely flat on New Year’s Day.
HMRC revealed that more than 24,800 people filed on 1 January. A further 38,000 had even squeezed theirs in before the bells on 31 December 2024, with 310 filing between 23:00 and 23:59 on New Year’s Eve.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
‘We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.
‘The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘self assessment’ to get started now.’
Internet link: HMRC website
Government must reset EU trade relations, urges BCC
The need for the UK government to reset trade relations with the EU continues to grow, according to a report from the British Chambers of Commerce (BCC).
The BCC report, assessing the fourth year of Brexit, identifies fresh challenges as regulations continue to diverge, creating ‘further headaches’ for traders on both sides of the Channel.
The Trade and Cooperation Agreement (TCA) was agreed on Christmas Eve in 2020 to allow tariff-free trade with the EU once Brexit took effect.
But services access is limited by rules on business mobility and only 15% of exporters think the deal is helping them to grow sales with Europe, while 41% disagree, according to a BCC survey.
Shevaun Haviland, Director General of the British Chambers of Commerce, said:
‘The government has talked a lot about a new era of trade relations with the EU. But firms are grappling with increasing costs off the back of the Autumn Budget and this change cannot come soon enough.
‘We need to see a smart and flexible approach to these negotiations. Our businesses are clear on what they want to see, less paperwork and bureaucracy, greater flexibility on business travel and a balanced Youth Mobility Scheme between the UK and EU.
‘There is no time to lose in driving forward the changes we need to see. Firms are suffocating under a blanket of rising costs and improving our trading relationship with the EU could provide the growth needed to transform the dour outlook many are facing.’
Internet link: BCC website
Employment plan will harm jobs, warns small firms
Small firms fear the new Employment Rights Bill will harm recruitment, according to a survey by the Federation of Small Businesses (FSB).
The research shows that 92% of small employers have concerns about measures in the Bill.
One of the main concerns cited in the Bill is changes to unfair dismissal legislation, which would expand the grounds for employees to take their new employer to a tribunal from their first day in the job.
In addition, 67% said the Bill would see them recruit fewer staff while 32% said they would reduce headcount before the measures become law.
Tina McKenzie, FSB’s Policy Chair, said:
‘Small firms have made it crystal clear that the Bill will not motivate them to hire more whatsoever. Their feedback is emphatic, resounding, and overwhelming.
‘Ministers must show they get the risk to jobs and avoid a cavalier, dogmatic or patronising approach to the loud and clear feedback from small businesses. The economy is in no fit state for a ‘war on work’.
‘If employers fear they will be sued, fewer will hire – with knock-on effects including a rising benefits bill and a lasting drag on living standards across the UK.’
Internet link: FSB website
