The tax gap rose to a record high of £59.2 billion in cash terms for 2024/25, according to the latest data from HMRC. The tax gap is the difference between what UK tax is expected to be paid and was actually paid. The gap was 6.4% for the 2024/25 tax year as the tax authority
HMRC has published the latest issue of the Employer Bulletin. The June issue has information on various topics, including: PAYE Settlement Agreement (PSA) — agreements and a mailbox closure. Update — mandatory payrolling of benefits in kind to launch in phases. Reminder — file monthly Construction Industry Scheme (CIS) returns or face late-filing penalties. Low
The decision to phase in the mandatory payrolling of benefits in kind is a ‘welcome step’ to allow employers and payroll software providers more time to prepare for significant changes, says the Association of Taxation Technicians (ATT). Benefits in kind are non-cash perks such as company cars or private medical insurance. Currently, most employers report
More than 110,000 unrepresented taxpayers who must register for Making Tax Digital (MTD) from April 2026 have still not done so, according to the Low Incomes Tax Reform Group (LITRG). LITRG’s estimates are based on official HMRC statistics on the number of unrepresented taxpayers it estimates will be in scope for MTD from April 2026,
Threequarters of UK workers are not on course to save enough for a ‘moderate’ lifestyle when they retire, according to a report by Pensions UK. The report says a moderate lifestyle will cost £32,700 for one person and £45,400 for two – but estimated just 23% of the working population were on course to reach
Hospitality businesses, teams and organisations are being urged to sign a new petition calling for the government to cut the VAT rate for the sector to 10% by UKHospitality. The trade group has launched #VATsTheProblem, a sector-wide campaign asking for the government to cut the rate of VAT for hospitality businesses, so it is in
Small businesses and the self-employed struggling with their finances to receive a helping hand as debt advice services are strengthened, the Treasury has announced. The Treasury is making a £4 million funding boost over three years for business debt advice services support. The funding will go towards expanding access to expert support to help businesses get
The government is helping families this summer with the cost-of-living crisis by cutting VAT on attractions and meals out. The temporary reduced rate of VAT will cover children’s meals, tickets and family attractions. HMRC guidance explains that a temporary reduced rate of VAT of 5% will apply to: certain supplies of children’s meals children’s admission to theatres, cinemas, concerts, exhibitions
Decisive action is needed to tackle the ‘hidden threat’ of crime against businesses damaging growth, according to the British Chambers of Commerce (BCC). Theft, fraud, scams and cyber-attacks are increasingly affecting firms of all sizes and across all sectors, BCC research has found. The business group’s research shows that 42% of UK businesses experienced some form of crime in the past year. The data reveals larger firms are more vulnerable, increasing
The government has announced increases to AMAPs, MAR and self-employed mileage rates, which will be backdated to 6 April 2026. This is the first uprating of the mileage rates in 15 years. The new rates are: an increase from 45p to 55p per mile for the first 10,000 miles over that, the rate will remain