Latest news with #SelfAssessment
Daily Mirror
4 days ago
- Business
- Daily Mirror
Alert that HMRC could investigate after 'watching your Instagram'
People might trigger a tax investigation if their 'lavish lifestyle' doesn't add up to what should be in their bank account People might not be aware that their social media accounts could be monitored and flagged if authorities notice they're living a lifestyle that their finances cannot support. The tactic is being used to ensure people are paying the right amount of tax. Rachel Harris, an accountant and tax expert, warned that people should be careful with their social media brags, as HM Revenue and Customs [HMRC] could easily be "watching your Instagram Stories." She said: "HMRC do a lot of work behind the scenes to understand who to investigate and when. One of the things that HMRC agents are trained to do is compare your income to your Instagram. "They're looking for something called lifestyle inconsistency. If you're posting online about luxury holidays and a lavish lifestyle, but your declared income doesn't match up, HMRC then have reason to investigate you. "They're trained to spot red flags like frequent travel, designer purchases and photos of property and assets that don't appear on your tax returns. HMRC combine what you post with the data that they already collect from your bank, your employer and your tax return." She added that people "could face an investigation" if the cash to fund this lifestyle doesn't add up to what you declare. The tactic isn't just limited to Instagram - it's all social media. The Mirror previously reported on a warning issued by tax barrister Andy Wood that HMRC's improved scrutiny of online behaviour may lead to potential investigations into your finances. He said: "HMRC has really ramped up its use of technology and data analytics to make sure people are paying the right amount of tax. Public social media posts are now being scrutinised, as they can provide evidence of suspected financial discrepancies. "HMRC is legally entitled to view and analyse any publicly available information on social media. This includes posts, photos, and videos that may suggest a lifestyle inconsistent with reported income or assets, evidence which can line up other findings and trigger investigations." What do I have to declare to HMRC? People might have to share certain information about their additional income with HMRC. This would be separate from what any employer already provides to the authority or not already included in your Self Assessment if you work for yourself. This may include money you earn from things like: selling things - for example at car boot sales or auctions, or online doing casual jobs such as gardening, food delivery or babysitting charging other people for using your equipment or tools renting out property or part of your home - including for holidays creating content online - for example on social media If you receive £1,000 or less from trading or casual activities between April 6 2025 and April 5 2026, you can use your trading allowance. This means you do not have to report your sales to HMRC. Use this free online tool to check if you should make a declaration. You can get help if you do not understand something about your tax by contacting HM Revenue and Customs.
Daily Mirror
6 days ago
- Business
- Daily Mirror
HMRC warning as 'huge' new tax change will take effect this month
A new tax change will come into effect this month which is set to impact "hundreds of thousands of people" who have still not submitted their Self Assessment tax return HM Revenue and Customs (HMRC) has introduced a new £10 daily late filing fine for people yet to submit their Self Assessment tax return, with experts flagging the enforcement could affect "hundreds of thousands of people". Alastair Douglas, CEO of TotallyMoney, warned: "While the initial £100 fine might not have been enough to encourage some to get going, from today, HMRC will start charging late filers an extra £10 per day. "This is on top of the eyewatering 8.5 per cent late payment interest rate on outstanding balances." He further warned that procrastinators faced severe penalties if they didn't act swiftly. Alastair said: "If in three months' time you still haven't filed your return, the taxman will hit you with a penalty of 5 per cent of the tax due or £300, whichever is greater. "Any penalties need to be paid within 30 days, and can be done in several ways, including Direct Debit, bank transfer, or by cheque." Mr Douglas also highlighted that there are options for those who cannot pay immediately: "If you have a 'reasonable excuse' you can challenge your penalty, and reasons include the death of a close relative, serious illness and issues with HMRC's online services. "If you're struggling to pay your bill in full, then head over to the HMRC website, where you might be able to set up a payment plan, under a 'Time to Pay' arrangement." Claire Trott, head of advice at St James's Place, echoed the sentiment, stating "pressure is rising" for tax dodgers dragging their feet, reports the Daily Record. Tax expert Ms Trott has issued a stark warning to those dragging their feet on their tax returns: "While completing a tax return is often a dreaded task, and one may choose to put it off, getting it sorted now could save you from significant financial penalties down the line." She added: "Up until now, late filers have faced a one-off fine of £100, but from today the consequences will become even greater. The £10 a day penalty will continue for 90 days, potentially adding up to £900 if the return is not submitted during this period. "Further penalties of 5% of the tax due or £300 (whichever is greater) will apply at both the six month and 12 month mark for those who still haven't filed." Ms Trott emphasised that anyone registered for Self Assessment must submit a return regardless of whether they owe tax, urging them not to ignore HMRC's reminders. She also pointed out that while filing your tax return today won't negate any fines already incurred, it will certainly halt additional charges. Ms Trott advised: "The quickest and simplest way to do this is to complete HMRC's online form. While the process may seem daunting, there are plenty of tips and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able. "With today's penalties likely to cause alarm for those who are unaware, the most important thing is not to rush the return process as this could cause you to leave out vital information that could result in paying more tax than necessary. "There are a number of details - such as gift aid payments, and necessary work expenses - that can be easy to forget about when filing a return but can amount to significant tax relief. It's important to take time to include all relevant information to ensure you receive the full tax relief you're entitled to."
Glasgow Times
13-06-2025
- Business
- Glasgow Times
HMRC reveal top reasons for fraudulent work expenses
It's easy to accidentally claim back for something that isn't allowed. Take a look at the most common reasons for invalid expense claims. You can't claim for any expenses that your employer has already reimbursed. HMRC posted on X: "Don't get caught out by invalid working from home expense claims. Use our free eligibility checker before making any claims, even if you have an agent." Don't get caught out by invalid working from home expense claims. ❌ Use our free eligibility checker before making any claims, even if you have an agent. ✅ Click the link below to learn more. 👇 — HM Revenue & Customs (@HMRCgovuk) May 29, 2025 HMRC says you cannot claim the following Travel and overnight expenses if travelling or commuting to and from your normal place of work Lunch costs when you are travelling to your normal workplace - you can only claim expenses for food and drink when travelling to a temporary place of work Food you bring from home when travelling to a temporary workplace, you can only claim the cost of food you paid for during your time away Working from home costs when you have an office base but choose not to work there. If your employment contract lets you work from home some or all of the time, for example as part of flexible working arrangements, then you won't be eligible for this relief Uniform, work clothing and tools that have already been provided by an employer can't be claimed - this includes choosing to purchase 'better quality' alternatives to those provided by your employer Uniform washing costs when your employer has a laundry facility that you choose not to use, such as by washing your uniform at home instead Workwear that doesn't include a visible logo, for example, if your employer advises you to wear all black clothing this is not an eligible expense Union fees, unlike certain professional membership fees, aren't an allowable expense Any work expenses that are already covered by your employer Five things to keep in mind before claiming Have you got evidence to back up your expense claim? From 14 October 2024, we will require customers who want to claim work expenses to provide supporting evidence to prove their eligibility before we progress the claim. Tax relief on expenses won't necessarily lead to a repayment. Some expenses are automatically coded through to the following year – check your tax code is still correct. Expenses must be completely work-related and necessary for you to do your job. You can't claim for any expenses that your employer has already reimbursed. If you had an eligible claim in a previous job but the terms are different in a new job, then you may have incorrect items in your tax code. If you pay tax through 'pay as you earn', you're unlikely to need to claim expenses through Self Assessment. Recommended reading: How to make a claim from HMRC If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
The Herald Scotland
13-06-2025
- Business
- The Herald Scotland
HMRC reveal top reasons for fraudulent work expenses
HMRC posted on X: "Don't get caught out by invalid working from home expense claims. Use our free eligibility checker before making any claims, even if you have an agent." Don't get caught out by invalid working from home expense claims. ❌ Use our free eligibility checker before making any claims, even if you have an agent. ✅ Click the link below to learn more. 👇 — HM Revenue & Customs (@HMRCgovuk) May 29, 2025 HMRC says you cannot claim the following Travel and overnight expenses if travelling or commuting to and from your normal place of work Lunch costs when you are travelling to your normal workplace - you can only claim expenses for food and drink when travelling to a temporary place of work Food you bring from home when travelling to a temporary workplace, you can only claim the cost of food you paid for during your time away Working from home costs when you have an office base but choose not to work there. If your employment contract lets you work from home some or all of the time, for example as part of flexible working arrangements, then you won't be eligible for this relief Uniform, work clothing and tools that have already been provided by an employer can't be claimed - this includes choosing to purchase 'better quality' alternatives to those provided by your employer Uniform washing costs when your employer has a laundry facility that you choose not to use, such as by washing your uniform at home instead Workwear that doesn't include a visible logo, for example, if your employer advises you to wear all black clothing this is not an eligible expense Union fees, unlike certain professional membership fees, aren't an allowable expense Any work expenses that are already covered by your employer Five things to keep in mind before claiming Have you got evidence to back up your expense claim? From 14 October 2024, we will require customers who want to claim work expenses to provide supporting evidence to prove their eligibility before we progress the claim. Tax relief on expenses won't necessarily lead to a repayment. Some expenses are automatically coded through to the following year – check your tax code is still correct. Expenses must be completely work-related and necessary for you to do your job. You can't claim for any expenses that your employer has already reimbursed. If you had an eligible claim in a previous job but the terms are different in a new job, then you may have incorrect items in your tax code. If you pay tax through 'pay as you earn', you're unlikely to need to claim expenses through Self Assessment. Recommended reading: How to make a claim from HMRC If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
Scottish Sun
12-06-2025
- Business
- Scottish Sun
HMRC announces major change for all taxpayers in shake-up
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HMRC has announced a major change for all taxpayers in a shake-up. The taxman has plans to scrap all outgoing letters to households, except ones that generate revenue such as tax demands. Sign up for Scottish Sun newsletter Sign up 1 HMRC is stopping outbound post for customers. Credit: Getty You can receive a letter from HMRC for a number of reasons, including if you are underpaying on tax or if you need to register for self-assessment. The Government confirmed the change in its spending review on Wednesday June 11. It is hoped the move will reduce the number of letters HMRC sends by 75% and save £50million a year by 2028‑29. Households who do not have easy access to internet or struggle with technology will still receive letters. Meanwhile, phone lines will also remain open for those who need to speak about any queries. However, there are fears from tax experts that those who are less tech savvy could miss out on important updates from HRMC. Alice Haine, personal finance analyst said the move risks leaving those with no digital skills in the "dark". She said: "The decision raises the risk that people miss key correspondence, or worse, mishandle their tax affairs – something that could lead to fines if they fail to fulfill their obligations." 'While the lack of physical mail some might persuade some to solve any stumbling blocks themselves through online support services, others might find these mediums difficult to navigate or totally inaccessible." An HMRC spokesperson told The Sun it will be communicating with taxpayers in "different ways instead" and provide a "better service" for customers. What Does My Tax Code Mean? A Simple Guide to Your HMRC Letter They said : "The government is providing an additional £500million in funding to make HMRC a digital-first organisation.' It comes as part plans to prioritise digital operations at HMRC. Households can already download the HMRC app which gives access to your tax, National Insurance and benefits. Users can also make a Self Assessment payment and claim a refund if you have paid too much tax. These tasks can also be carried out online via the website, but the option to submit it through the post remains.
