Latest news with #ITSA
Yahoo
3 days ago
- Business
- Yahoo
ICAEW highlights five key changes for income tax self-assessment
The Institute of Chartered Accountants in England and Wales (ICAEW) has outlined five key changes for taxpayers completing their 2024/25 Income Tax Self-Assessment (ITSA) return. Around 780,000 taxpayers filed their 2023/24 return on the final day, 31 January 2025, with nearly 33,000 doing so in the last hour, the chartered accountancy body said. The ICAEW advised taxpayers to understand these changes to avoid last-minute difficulties. The first change highlighted was to capital gains tax (CGT) rates. For disposals of assets (excluding residential property and carried interest) after 30 October 2024, rates have risen from 10% to 18% for basic rate taxpayers and from 20% to 24% for higher rate taxpayers. The ITSA return may not automatically apply these new CGT rates, so HMRC has provided a calculator to adjust figures manually. The CGT annual exempt amount has also dropped from £6,000 to £3,000, affecting more taxpayers, while the CGT rate on residential property disposals for higher-rate taxpayers has decreased from 28% to 24%. The second change highlighted was the inclusion of new boxes in the 2024/25 tax return for reporting profits and losses from crypto asset disposals, previously recorded under other property, assets, and gains. HMRC has increased its focus on crypto tax compliance, launching a campaign in August 2024 targeting taxpayers suspected of underpaying tax. The third change highlighted was that, from 2024/25, the cash basis—calculating profits based on cash received and paid—becomes the default for most sole traders and partners, replacing the accruals basis. Taxpayers wishing to continue using the accruals basis must now elect to do so, likely leading to wider use of the cash basis, said ICAEW. The fourth change highlighted was that the 2024/25 tax year is the first to calculate trading profits on a tax year basis, following a transitional period in 2023/24. For businesses with transitional profits in 2023/24, 20% of these profits will typically be taxed in 2024/25, though taxpayers can elect to accelerate taxation. Any remaining transitional profits will be taxed in the year the business ceases. The fifth change highlighted was that, from 6 April 2026, sole traders and landlords with combined gross sales and rents over £50,000 must comply with Making Tax Digital (MTD) for income tax, requiring digital records and quarterly updates to HMRC. The MTD threshold will lower to £30,000 in April 2027 and £20,000 in April 2028, bringing more taxpayers into scope. The chartered accountancy body urged taxpayers to plan ahead to ensure compliance with these updated ITSA requirements. ICAEW technical manager for tax Stephen Relf said: 'Many taxpayers are keen to get their tax affairs in order early, and thoughts may now be turning to the completion of the 2024/25 tax return. To help, we've identified some of the areas where tax rates, rules or allowances, or the tax return itself, have changed for 2024/25. And we've provided tips for looking ahead to 2025/26. 'Don't forget that HMRC provides a range of tools and guidance to help with completing the tax return. Download HMRC's app to get your national insurance number or to check your entitlement to the state pension. 'Also, taxpayers can set up a budget payment plan with HMRC, allowing them to make weekly or monthly direct debit payments toward their next income tax self assessment bill.' "ICAEW highlights five key changes for income tax self-assessment" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
BBC News
5 days ago
- General
- BBC News
Digital divide: Gloucestershire woman given laptop amid fears of loneliness
A woman who fears "being left behind and lonely" and a home schooling mum are just two beneficiaries of a charity working to tackle the digital Bowden, from Sedbury, Gloucestershire, has a lung disease that affects her breathing and has previously struggled with booking medical appointments said receiving a laptop from ITSA Digital Trust, based in Cheltenham, will help her to stay more independent as well as keeping in touch with her has now launched an appeal for 10,000 computers to give out by the end of the year, with chief executive Geoffrey Newsome, adding that the charity is "trying to bridge the gap" for those without IT equipment and skills. Ms Bowden, who has stage four chronic obstructive pulmonary disease, said she has previously been "a bit technophobic" but is now excited to use her new laptop."I'm willing to give it a go," she said. "One, to be in touch with my family and friends, and two, to be more independent in shopping [online] instead of having to ask somebody to get it for me."Some time in the future, I'm not going to have enough energy to go out, so I don't want to be left behind and lonely. I need to have friends, everybody does." ITSA has been running for 20 years and has helped more than six million people in Africa get educated in receives donations of unwanted IT equipment from businesses and organisations, including schools and councils, before refurbishing it at its base in Cheltenham so it is ready for donation. Mum Honey educates her two sons, aged 13 and nine, at home in Drybrook, but said that after their laptop broke about six months ago, the family were "not in a position" to buy another Lucas and Ted can do some learning through books, other things are exclusively online, she said."I can borrow a laptop from work, but it's really difficult when there's two or three of us trying to get stuff done and we're squabbling over a laptop," Honey have now provided the family with a laptop."It's amazing. It will make a massive difference to us." Mr Newsome said the charity is now aiming to reach its new target to hand out 10,000 computers to people in the UK as well as abroad."Digital technology is improving lives for some, but sadly still leaving far too many behind," he said."In the UK, digital deprivation continues to divide society and exclude people who do not have technology or cannot use it effectively."Our aim is to give everyone the opportunities we have to benefit from the wonders of IT."
Yahoo
14-03-2025
- Business
- Yahoo
HMRC issues new £3,000 allowance for thousands of people
HMRC announced an increase in the Income Tax Self Assessment (ITSA) reporting threshold from £1,000 to £3,000 on March 11. Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return. This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online. This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. READ MORE: Blue Badge rule change means 1.35 million could wrongly pay £195 READ MORE: Fred Sirieix fears London has 'is so quiet' as Kirstie Allsopp blames people being 'scared' to go out Exchequer Secretary to the Treasury, James Murray said: "From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit. "Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle." Mr Murray, the minister responsible for HMRC, announced this reform on March 11 to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales in a speech to mark the 20th anniversary of HMRC. Eve Williams, CEO of eBay UK, commented: "This will be welcome news for thousands of UK sellers for whom eBay is a side hustle and a means of supplementing their household income during challenging times. "By removing the paperwork associated with selling online, hopefully we will help these side hustles grow into fully fledged small businesses." Looking for more from MyLondon? Subscribe to our daily newsletters here for the latest and greatest updates from across London.
The Independent
11-03-2025
- Business
- The Independent
Vinted sellers to taxi drivers impacted by major tax change
The UK government is set to increase the Tax Self Assessment (ITSA) reporting threshold for trading income from £1,000 to £3,000 The change means about 300,000 individuals - including Vinted sellers, taxi drivers, and dog walkers - will no longer be required to file self-assessment tax returns. Of those, about 90,000 will owe no tax, while those that do can pay their taxes through a simplified online service. The change aims to reduce administrative burden and encourage entrepreneurial activity, particularly for those who started side hustles during the pandemic. While simplifying tax reporting, this measure won't alter the total amount of tax owed.
The Independent
11-03-2025
- Business
- The Independent
Major tax change announced for side-hustles affecting Vinted sellers, taxi drivers and dog walkers
A major tax shakeup will see 300,000 Vinted sellers, taxi drivers and dog walkers no longer required to file tax returns under Sir Keir Starmer 's plans to grow the economy. Side-hustlers, including those creating content online and gardening on the side, will be boosted as the government hikes the Tax Self Assessment (ITSA) reporting threshold for trading income. The increase, from £1,000 to £3,000, will mean around 300,000 people will no longer have to fill out time-consuming tax returns. Around 90,000 of these will owe no tax, meaning there is no reason for them to report their income, the government said. The rest will be able to pay any tax through a new 'simple online service', officials added. While the changes for those with side-hustles – which exploded in popularity during the pandemic – will spare people from filling in the self-assessment form, it will not change the overall amount of any tax owed. Tax minister James Murray will announce the changes at a speech marking the 20th authority of His Majesty's Revenue and Customs (HMRC), the UK's tax authority. He will also set out plans to ease import restrictions on fine art and antiques to be shown in the UK under a government scheme for temporary admission of valuable objects. Ahead of the speech, Mr Murray said: 'From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit. 'Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle. "We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people's pockets." He will also vow to boost HMRC's customer service, a frequent complaint of those trying to contact the taxman. During the pandemic, nearly a fifth of people said they had taken up a side hustle, including selling handcrafted products online or art and photography. Other popular side gigs included couriering and even people trying to become social media influencers or popular online content streamers. Meanwhile an increasing backlash at fast fashion and desire to shop sustainably has fuelled a boom in the resale market, with websites including eBay, Vinted and seeing huge growth.
