Scams warning as self assessment deadline looms
HMRC is warning of scam attempts targeting self assessment taxpayers in the run up to the 31 January deadline.
Last year, concerned taxpayers reported nearly 150,000 scam referrals to HMRC.
Around half of all scam reports in the last year were fake tax rebate claims, says the tax authority.
There has been a 16.7% increase in all scam referrals to HMRC – 144,298 were received between November 2023 and October 2024, up from 123,596 in the previous 12-month period, it added.
If communication claiming to be from HMRC asks for personal information or offers a tax rebate, check the advice on GOV.UK to help identify if it is scam activity.
HMRC says it will never leave voicemails threatening legal action or arrest or ask for personal or financial information over text message – only fraudsters and criminals will do that.
Kelly Paterson, Chief Security Officer at HMRC, said:
‘With millions of people filing their self assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.
‘Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.
‘Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK.’
Internet link: GOV.UK HMRC press release
Industrial Strategy must benefit all parts of the UK
The UK’s Industrial Strategy must benefit all parts of the country, according to the British Chambers of Commerce (BCC).
The government says the Industrial Strategy will be published in Spring 2025, alongside the multi-year Spending Review.
The BCC is urging ministers to integrate each nation and region’s strengths into the plan, alongside a focus on sectors.
In a written submission, the business group says that for the strategy to succeed, foundation issues such as a competitive tax environment, skilled workforce and an enabling regulatory environment must be in place. It points out that achieving this will require collaboration across government departments and involvement from both the public and private sectors.
Jonny Haseldine, Policy Manager at the BCC, said:
‘The Industrial Strategy is a much-needed opportunity to boost economic growth and investment.
‘With millions of businesses now facing increased costs following last month’s Budget – even more is now riding on the government’s strategy. Firms in every corner of the UK need this plan to deliver at pace for their needs and their communities.
‘The strategy needs to identify priority sectors which will drive growth – building on the past but crucially looking forward.
‘But the industrial strategy will struggle unless other key obstacles to business investment are tackled. It must not be designed and implemented in isolation from other policy measures and strategies.’
Internet link: BCC website
HMRC late payment interest cut by 0.25%
HMRC has reduced late payment and repayment interest rates following the cut to the base rate.
The Bank of England cut the base rate to 4.75% on 7 November, the second reduction this year.
This has triggered a cut in HMRC interest rates which are pegged to the base rate.
From 26 November, the late payment interest rate was cut to 7.25% from 7.5%. The repayment interest rate was also reduced to 3.75% from 4.0% from 26 November.
HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.
Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 5.75% from 6.0% from 18 November.
The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is down by 0.25% to 4.5% from 5% from 18 November.
Internet link: GOV.UK
Permanent business rate cut for high street on the way
The government has published draft legislation to permanently cut business rates for retail, hospitality and leisure properties from 2026.
The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses, the government added.
Until then, 250,000 retail, hospitality and leisure (RHL) properties will receive 40% relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system.
This support is alongside the Budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties.
James Murray, Exchequer Secretary to the Treasury, said:
‘For too long the business rates system has been working against our high streets.
‘[This] is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed.
‘This Bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.’
Internet link: GOV.UK
More than 400,000 student loan customers use digital refund service
Over 400,000 customers have now used the Student Loan Company’s (SLC) digital refund service.
The SLC introduced a new service into the online account for repayment customers in May 2024 and has released data on the first six months of operation.
The SLC says its simple, digital service is an easy way for customers to self-serve, requesting a Below Threshold Refund, which is then paid directly into their bank account.
Under the repayment regulations, there are four refund scenarios, which the publication covers. These are ‘below threshold refunds’, ‘over-repayment refunds’, ‘early repayment refunds’ and ‘wrong plan type refunds’.
Steven Darling, Customer Experience Director at the SLC, said:
‘At the SLC, we want to provide the best possible customer experience, and from the feedback we receive from customers, they want to be able to self-serve in their online account.
‘With a below threshold refund being the most common reason why a customer might be eligible for a refund, we’ve made it quick and easy to request a refund through the online account. The figures in our latest report demonstrate the value of these improvements, with £61.6 million being paid to 248,000 customers since May 2024.
‘I would encourage customers to keep their contact and bank details up to date in their online account to ensure they don’t miss any key communication regarding refunds.’
Internet link: GOV.UK
Pension reforms ‘must unlock growth’
Pension reforms announced by Chancellor Rachel Reeves must unlock growth, according to the British Chambers of Commerce (BCC).
Pension megafunds will be created as part of the biggest set of pension reforms in decades. The government says this will unlock billions of pounds of investment in exciting new businesses and infrastructure and local projects.
The reforms, which will be introduced through a new Pension Schemes Bill next year, will create megafunds through consolidating defined contribution schemes and pooling assets from the 86 separate Local Government Pension Scheme authorities.
These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential, which could deliver around £80 billion in investment in exciting new businesses and critical infrastructure while boosting defined contribution savers’ pension pots.
Shevaun Haviland, Director General at the BCC, said:
‘Increased investment in the UK economy is crucial if businesses are to deliver the growth we all want to see.
‘And with firms facing into a wall of fresh costs after a tough Budget, it is important that the Chancellor looks at the options to unlock more funding.
‘UK pensions can be a crucial component in doing that. They can generate billions for investment in infrastructure projects and the businesses of the future.’
Internet link: BCC website
