HMRC TARGETED CAMPAIGNS
Online Sellers
HMRC used social media recently to warn individuals selling goods or services online that some digital platform operators, including the likes of AirBnB, Etsy, Uber, eBay etc., will soon be required to share their details with them.
This follows changes introduced in January under which these platforms will have to provide annual reports to HMRC, starting with year ending 31 December 2024. The exception to this will be ‘casual sellers’ with fewer than 30 sales and earning no more than €2,000 per year.
Whilst this doesn’t change any tax rules for online sellers it does mean that HMRC will have more information about how much they have earned to help identify those who haven’t been paying tax when they should have.
Animal Breeders
It was widely reported in 2019 that more than £5m had been raised by HMRC’s 2015 taskforce gathering information on those who were incorrectly declaring income from puppy sales.
Now, following the surge in pet ownership and prices during the pandemic, HMRC are again scrutinising cat and dog breeders as they believe a large number have failed to register for Self Assessment or declare income from the breeding and sale of animals. Whilst it is not clear how much tax may be at stake this time, letters are being issued inviting recipients to make a voluntary disclosure.
Construction Industry Scheme (CIS)
HMRC also recently launched a letter campaign to improve contractors’ compliance with their CIS obligations. This seems to have arisen from some records showing contractors making incorrect CIS tax deductions from payments to subcontractors.
Recipients of these letters will be reminded that they are required to meet the following obligations and that if no action is taken HMRC may open a compliance check:
- Verify all new subcontractors before they are paid
- Verify subcontractors who have been used before but not included on a CIS return in the current or last two tax years
- Ensure correct CIS deductions are applied.
Self-Assessment & Child Benefit
Taxpayers already in Self-Assessment who have declared the wrong amount of Child Benefit or missed it off their 2022-23 return altogether are being contacted by HMRC because the High Income Child Benefit Charge will be incorrectly calculated. A statutory deadline of 30 September 2024 has been imposed and no further action will be taken if individuals self-amend before this date.
PAYE OVERPAYMENTS
Employees receiving a P800 for an overpayment of PAYE tax will now have to go online to claim their refund. Historically, where no action was taken by an individual, they would have received a cheque within 21 days of the P800 date. Now individuals will need to either log into their HMRC personal tax account or use GOV.UK’s new online serve to request a bank transfer or cheque refund.
EMPLOYMENT RIGHTS BILL
Although an exact date is not known, we could see a new Employment Rights Bill being introduced in September as part of the new Labour government’s commitment to ‘make work pay’. Some of the proposed reforms and key priorities include:
- A ban on zero-hour contracts;
- Ending fire and re-hire practices;
- Making parental leave and sick pay day one rights;
- Removing the lower earnings limit and waiting period from Statutory Sick Pay;
- Strengthened TUPE protections.
We’ll keep you updated on relevant changes as the Bill progresses.
REMINDER - NEW RULES ON DISTRIBUTING TIPS
The Employment (Allocation of Tips) Act 2023 comes into effect on 1 October 2024 aiming to improve fairness by mandating that all tips, gratuities and service charges are allocated fairly among employees. This will include both cash and card tips and prevent employers making deductions for administrative fees. Employers will also need to have a written policy outlining the distribution of tips and keep detailed records of all tips received and distributed for a period of three years.
CLARKSONS NEW IN-HOUSE PAYROLL
We are delighted to have recently welcomed Leanne Hunter, an experienced Payroll Manager, to the Clarksons team. Leanne’s appointment means we are bringing all payroll functions in-house to ensure the continued delivery of a high standard of service. Existing payroll clients will be contacted by Leanne over the coming days and weeks, if she's not been in touch already!
We are here to work alongside you and help you prosper so please do get in touch at any time.
Dawn, James, Claire, Rebecca, Elaine, Leanne, Penn, Nat, Lucy, Becky, Steph & Janet.
Clarksons 01969 624999