Were you a festive tax return filer? Apparently 4,757 people in the UK were! Not sure how to recycle electrical goods or what the new minimum wage rates will be this April? Then read on….
Welcome to MLS Accountancy’s first blog post for 2024. We hope you had an enjoyable break and are feeling rejuvenated and ready to go for the new year. If you need any assistance with your business’s accounting needs, please do get in touch and we will be happy to help.
4,757 festive tax return filers
HMRC announced that 4,757 taxpayers filed their Self Assessment tax return on Christmas Day.
This added to 8,876 being filed on Christmas Eve and a further 12,136 being filed on Boxing Day. Apparently, the peak time was between 12 and 1pm on Boxing Day when HMRC received 1,121 returns.
Myrtle Lloyd, HMRC’s Director General for Customer Services, used the opportunity to encourage all to file their return in good time when he said: “Our Christmas Day filers proved that there is no time like the present to get started on Self Assessment … There’s no need to delay, getting it done ahead of the 31 January deadline means less stress and longer to work out payment options.”
If you need help with your tax return, or haven’t let us have your tax return information yet, please don’t hesitate to get in touch. We will be happy to help you complete this essential job!
See: https://www.gov.uk/government/news/many-happy-returns-from-4757-festive-filers-on-christmas-day
Government reforms on reuse and recycling of electrical goods
The government has announced new UK-wide plans designed to make it easier to recycle electrical goods.
A range of measures are proposed, including:
- Collecting waste electrical items directly from households. These collections would be financed by the manufacturers, and not the taxpayer.
- Free of charge collection drop points for electrical items being provided by large retailers, without a need to buy a replacement product from the retailer.
- When delivering replacement large electrical items, such as fridges and cookers, the retailer being responsible for collecting the old one.
The proposals mean that recycling of electrical goods can be a convenient part of a person’s regular routine.
It is estimated that 155,000 tonnes of smaller electrical items, including cables, toasters, kettles, and power tools, are currently thrown in the bin each year with no thought to recycling. In addition, it is estimated that a further 527 million unwanted electrical items are currently sitting unused in UK homes but contain valuable materials such as gold, silver, and platinum that could be reused.
Just during the Christmas period, 500 tonnes of Christmas lights are thrown away each year in the UK.
The scale of the problem and the potential for reuse of materials mean these proposals have the potential to drive further growth in the UK’s treatment and re-use sector and benefit those businesses working or expanding into this area.
The announcement also reports on a recent study on public attitudes and behaviours around recycling. The study found that around 86% of people in the UK think that recycling and the associated time it takes to do this properly is worthwhile. More than 77% of householders would see a retailer offering an electrical recycling service as more environmentally responsible.
Therefore, being able to demonstrate an environmentally conscious approach is likely to benefit any business and is well worth considering in your business plans and marketing.
Paying tax on cryptoasset transactions
HMRC recently launched a new campaign targeted at crypto investors as part of a crackdown on tax evasion. They have introduced a new disclosure and payment service for taxpayers to voluntarily disclose and pay any unpaid taxes associated with cryptoassets.
Cryptoassets (also known as tokens or cryptocurrencies) include exchange tokens (for example, bitcoin), non-fungible tokens and utility tokens.
HMRC view the profits or losses incurred from buying and selling such cryptoassets as liable for capital gains tax. Only in exceptional circumstances would they recognise crypto trading as a taxable ‘business’ trade.
Many who own cryptoassets may not be aware of the tax obligations on these digital assets. This voluntary disclosure service provides an opportunity to put things right with potentially lower penalties than if HMRC discover the underpayment for themselves.
Such a discovery is likely to become easier for HMRC. Tax avoidance from using cryptoassets is a subject of international concern, and there are moves to require crypto platforms to share taxpayer information with tax authorities.
If you or anyone you know needs any advice or help in this area, please don’t hesitate to contact us!
See: https://www.gov.uk/guidance/tell-hmrc-about-unpaid-tax-on-cryptoassets
Minimum wage rates increase from 1 April 2024
Employers should be aware that all minimum wage rates increase on 1 April of each year. For 2024, these increases are substantial. The increases apply to all National Minimum Wage rates and the National Living Wage rate.
Another change that comes with the new rates is that the National Living Wage is being extended to include those aged 21 years old and over.
Minimum wage – increased rates from April 2024
See the table below that shows the current minimum wage rates and new rates from 1 April 2024:
| Current rate (since April 2023) | New rate from April 2024 | Increase | |
| National Living Wage (23 years old and over) | £10.42 | £11.44 (21 years old and over) | 9.8% |
| National Minimum Wage (21-22 years old) | £10.18 | N/A | N/A |
| National Minimum Wage (18-20 years old) | £7.49 | £8.60 | 14.8% |
| National Minimum Wage (16-17 years old) | £5.28 | £6.40 | 21.2% |
| National Minimum Wage (apprentice rate) | £5.28 | £6.40 | 21.2% |
| Accommodation Offset | £9.10 | £9.99 | 9.8% |
If you would like help with your payroll, please don’t hesitate to call us; we are here to help!
Date set for Spring Budget 2024
The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024.
We will keep you updated with any announcements that could affect you or your business.
See: https://www.gov.uk/government/news/spring-budget-2024-date-confirmed
£7 million funding boost to level up high streets
A new government pilot, the High Street Accelerators programme, will be trialling efforts to regenerate high streets in 10 areas across England.
The idea is that communities will work in partnership with local authorities and businesses to tackle problems such as empty shops, anti-social behaviour and a lack of foot traffic on the high street.
The 10 selected areas will each receive an initial £237,000 to kickstart their partnerships. However, they can also apply for a share of a further pot totalling £5 million to improve green spaces and pleasant socialising environments for residents.
Over the next 2 years this funding will be spent and the impact it has on the designated high streets will be evaluated. This will help the government decide on what further action can be taken to revive high streets in these and other areas.
This pilot programme is just one initiative that the government is using to try and revive England’s high streets. New High Street Rental Auctions regulations are also to be introduced later this year that will give local authorities the ability to sell off the rental rights for empty properties to willing tenants. These could include businesses and community groups.
See: https://www.gov.uk/government/news/high-streets-levelled-up-with-7-million-funding-boost