Latest news with #HMRCgovuk
Glasgow Times
3 days ago
- Business
- Glasgow Times
HMRC set to punish UK households who 'didn't realise'
The Labour Party government's tax arm says people need to plan several years to avoid paying a hefty tax bill. The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Here is an example: Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). Teachers! Need some inspiration for your next lesson? 📢 Tax Facts is a free #TeacherResource to help pupils aged 8-17 understand the UK tax system. Visit the link below to download ready to use lesson plans, videos and activity sheets. ⬇️ — HM Revenue & Customs (@HMRCgovuk) August 9, 2025 Lorraine Wilson, principal associate in the private wealth team at national law firm Weightmans, warned that ever more people are being dragged into paying the tax "without realising it". Ms Wilson said: "Someone giving away assets late in life may not realise that gifts made within seven years of death can still be taxed." Ms Wilson said it is important to take "early action" to get your estate in order and think about your inheritance tax liability. Recommended reading: "For those whose wealth is tied up in property or investments, there are structured options like trusts or family investment companies. "These can help you pass wealth down the generations while keeping some flexibility." Last year, HMRC collected a record £7.5 billion from IHT. That figure is expected to grow, especially as more people are pulled into the tax bracket simply because of rising property values.
South Wales Argus
4 days ago
- Business
- South Wales Argus
HMRC set to punish UK households who 'didn't realise'
The Labour Party government's tax arm says people need to plan several years to avoid paying a hefty tax bill. The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Here is an example: Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). Teachers! Need some inspiration for your next lesson? 📢 Tax Facts is a free #TeacherResource to help pupils aged 8-17 understand the UK tax system. Visit the link below to download ready to use lesson plans, videos and activity sheets. ⬇️ — HM Revenue & Customs (@HMRCgovuk) August 9, 2025 Lorraine Wilson, principal associate in the private wealth team at national law firm Weightmans, warned that ever more people are being dragged into paying the tax "without realising it". Ms Wilson said: "Someone giving away assets late in life may not realise that gifts made within seven years of death can still be taxed." Ms Wilson said it is important to take "early action" to get your estate in order and think about your inheritance tax liability. Recommended reading: "For those whose wealth is tied up in property or investments, there are structured options like trusts or family investment companies. "These can help you pass wealth down the generations while keeping some flexibility." Last year, HMRC collected a record £7.5 billion from IHT. That figure is expected to grow, especially as more people are pulled into the tax bracket simply because of rising property values.
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
HMRC set to punish UK households who 'didn't realise'
The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Here is an example: Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). Teachers! Need some inspiration for your next lesson? 📢 Tax Facts is a free #TeacherResource to help pupils aged 8-17 understand the UK tax system. Visit the link below to download ready to use lesson plans, videos and activity sheets. ⬇️ — HM Revenue & Customs (@HMRCgovuk) August 9, 2025 Lorraine Wilson, principal associate in the private wealth team at national law firm Weightmans, warned that ever more people are being dragged into paying the tax "without realising it". Ms Wilson said: "Someone giving away assets late in life may not realise that gifts made within seven years of death can still be taxed." Ms Wilson said it is important to take "early action" to get your estate in order and think about your inheritance tax liability. Recommended reading: "For those whose wealth is tied up in property or investments, there are structured options like trusts or family investment companies. "These can help you pass wealth down the generations while keeping some flexibility." Last year, HMRC collected a record £7.5 billion from IHT. That figure is expected to grow, especially as more people are pulled into the tax bracket simply because of rising property values.
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.
The Herald Scotland
04-06-2025
- Business
- The Herald Scotland
Nationwide, NatWest, Lloyds customers issued HMRC warning
A lot of banks nowadays offer two or three-year fixed savings accounts as a way to grow your funds. But while you're counting the cash at the end of the term, you could be hit with a tax demand because HMRC views the interest from these accounts as income within a single year. Got a #sidehustle? 💸 We're here to help you get your tax right. ✅ Click below to check if you need to tell us about your side hustle income today. ⬇️ — HM Revenue & Customs (@HMRCgovuk) June 4, 2025 For some savers, the final payout could nudge them over the tax-free threshold, triggering a tax event. However, it's key to remember that this doesn't apply to cash ISA accounts, which remain tax-free up to £20,000. The current tax-free interest earnings cap for basic-rate taxpayers sits at £1,000 annually. Those on the higher-rate can pocket up to £500 without owing tax, but additional-rate taxpayers aren't afforded any tax-free interest allowance. Laura Suter, personal finance director at AJ Bell, told the Star: "Many people won't realise that [fixed rate accounts] could leave them with a tax headache in the future." She added: "You are taxed on the interest on your savings when it is accessible by you. "So if you pick a fixed-rate savings account that pays out all the interest at maturity, for tax purposes all of that interest will be counted in one tax year. Recommended reading: "This means that the interest from just one account could take you over your Personal Savings Allowance on its own." Ms Suter suggested getting an account where interest is paid out monthly or annually instead. She continued: "This means it is spread across different tax years. "Or you can opt for a fixed-term ISA savings account, where you won't pay any tax on the interest."
