Latest news with #PriceBailey
Daily Mirror
22-07-2025
- Business
- Daily Mirror
Taxpayers told they may be free from HMRC fees and could be due a refund
A total of 46,266 penalties were withdrawn in the tax year to April 2024 after being issued to people who either owed no tax or missed deadlines due to reasons beyond their control Tens of thousands of taxpayers may have been wrongly fined by HMRC, and many Brits could be in line for refunds after a record number of penalties were cancelled last year. A significant 46,266 fines were withdrawn over the course of just 12 months, having been issued to individuals who either didn't owe any tax or missed deadlines due to circumstances beyond their control. These figures, published in HMRC's most recent statements, show a 29 per cent surge in annulled penalties compared to the previous year. Now, experts are calling on people to contest fines they reckon are unjust. Taxpayers can be served an automatic £100 fine for failing to meet the self-assessment deadline, while businesses can be penalised for tardy VAT returns. However, a wave of successful appeals has been seen following challenges made through HMRC's online system, which underwent an overhaul in early 2023 to simplify the appeal process, reports the Express. Yet Andrew Park, a tax partner at accountancy firm Price Bailey, warns that the issue is much more pervasive, with numerous fines being set off by banking delays, administrative errors within HMRC, and chronic customer service shortcomings. "Late filing penalties are disproportionately levied on people on low incomes, many of whom have no tax to pay," he disclosed to the Telegraph. It has also come to light that over the past five years, 600,000 penalties have been meted out to individuals earning below the £12,570 personal allowance, indicating they had zero tax liability to begin with. After obtaining this data through a Freedom of Information request, the thinktank Tax Policy Associates has called for the abolition of such penalties. HMRC's helpline has also been criticised. In the first half of 2024-25, the tax authority left 35% of calls unanswered, falling short of its 85% target. Despite drafting in more call handlers to improve the situation, scores of taxpayers are still struggling to get assistance prior to the filing deadline. HMRC issued a staggering nine million penalties on taxpayers last year, a jump from just over eight million the previous year. Park says millions could be paying penalties needlessly: "When two-thirds of appealed penalties are overturned, yet only a small fraction of the nine million issued are challenged, it suggests a significant number of taxpayers may be paying penalties they could successfully contest." A revised points-based penalty system introduced under the Making Tax Digital initiative is set to give self-employed individuals using digital system relief from the automatic £100 fine. Instead, self-employed taxpayers will accrue penalty points with a maximum £200 cap per return. Those not covered by Making Tax Digital – including numerous low-income earners – remain subject to the more unforgiving legacy system. An HMRC spokesperson defended their position: "Our penalty reforms enable customers to appeal easily and quickly online against both penalties and penalty points. Our new points-based system means only those who persistently miss deadlines will incur a financial penalty." Taxpayers who reckon they've been unjustly fined have a 30-day window from the date on the penalty notice to lodge an appeal. Those who no longer need to file a return must inform HMRC prior to January 31 to dodge a fine. What to do if you've been fined Check if you actually owed tax – if not, your fine may be challengeable. Appeal online via your HMRC account within 30 days. If you're self-employed and not in Making Tax Digital, be aware you're still under the old regime. Contact HMRC if you believe you were wrongly issued a return request.
Telegraph
21-07-2025
- Business
- Telegraph
HMRC cancels record number of tax return penalties
HM Revenue and Customs (HMRC) cancelled a record 46,266 fines last year after penalising taxpayers who owed no tax. Taxpayers and businesses face an automatic fine if they miss the self-assessment or VAT deadline. However, they can appeal if they filed late through no fault of their own or if they have been mistakenly asked to complete a tax return. The number of penalties cancelled on appeal has surged 29pc year on year to 46,266, according to HMRC's latest annual accounts. HMRC said this was because it was now easier for businesses to appeal fines through their online accounts after the new penalty regime for VAT came into effect in January 2023 and had driven the surge in fines being overturned. However, Andrew Park, of Price Bailey, said banking delays, administrative failings by HMRC, and poor customer service were all factors that led to taxpayers filing late. The tax office did not pick up the phone to 35pc of callers in the first half of 2024-25, despite a target of answering at least 85pc of calls. However, figures show HMRC's customer service levels have improved since then, thanks to the deployment of extra customer service advisers. In addition, many fines may have been cancelled because the individual owed no tax. Mr Park said: 'Late filing penalties are disproportionately levied on people on low incomes, many of whom have no tax to pay.' It recently emerged that 600,000 penalties have been issued over the past five years to people earning less than the tax-free personal allowance. The think tank Tax Policy Associates, which obtained the data in a freedom of information request, has called on HMRC to scrap late penalties for those earning less than £12,570. HMRC has introduced a new points-based penalty system for taxpayers joining the Making Tax Digital programme. Under the system, there will no longer be an immediate £100 fine if the deadline is missed, and penalties will be capped at £200 per tax return. However, those with a lower income who are outside Making Tax Digital will continue to be assessed under the old regime. In total, the tax office issued nine million penalties, up from over eight million the year before. Missing the self-assessment deadline results in an automatic £100 penalty, with additional penalties rolling up over time. For businesses, failing to submit a VAT return on time results in a penalty point, with a £200 fine due once they reach their penalty threshold, set by their accounting period. Mr Park said many taxpayers might be unaware they could appeal a fine. 'When two-thirds of appealed penalties are overturned, yet only a small fraction of the nine million issued are challenged, it suggests a significant number of taxpayers may be paying penalties they could successfully contest.' HMRC asks those who no longer need to submit a tax return to inform them before the deadline on 31 January. Anyone who believes they have been incorrectly fined for filing late can appeal to HMRC within 30 days of the penalty notice being issued. A spokesman for HMRC said: 'Our penalty reforms enable customers to appeal easily and quickly online against both penalties and penalty points. Our new points-based system means only those who persistently miss deadlines will incur a financial penalty.'
Malaysian Reserve
17-07-2025
- Business
- Malaysian Reserve
Alastair Campbell headlines successful event with accountancy firm Price Bailey
Over 200 business leaders attended the standout event hosted by Price Bailey in London Discussion explored the divide between business leaders and MPs on tax reform and investment priorities for economic growth, a theme uncovered through Price Bailey's new report, Bridging the Divide LONDON, July 17, 2025 /PRNewswire/ — Leading chartered accountants and business advisory firm Price Bailey welcomed political strategist and best-selling author Alastair Campbell for an exclusive evening of discussion and debate at the prestigious ICAEW building in London. The evening was hosted by Price Bailey Partner and Strategic Corporate Finance expert, Chand Chudasama, who highlighted a striking statistic: only seven members of the current UK Government have direct business experience. Chudasama argued that it would remain challenging for Labour to understand business needs, given so few have put their own capital at risk to build their own businesses. Revisiting Labour's campaign manifesto, Chudasama and Campbell discussed the proposal to attract private investment to drive public sector development. Campbell, while in support, also highlighted the Government's ability to modernise fiscal rules. Following the event, Chudasama echoed this, adding: 'Modernising the fiscal rules would enable the bond market to support government borrowing and allow the government to invest in TRL level nine or higher assets – this would be good debt, and the returns could benefit the entire economy.' The evening featured a Q&A session, with audience questions ranging from British attitudes toward U.S. politics, to youth perspectives on national identity, and MPs' understanding of welfare issues affecting local communities and not for profit organisations. Reflecting on the event, Martin Clapson, Managing Director at Price Bailey, said: 'It was a pleasure to host Alastair Campbell and engage in such a thought-provoking discussion. The insights shared, particularly from our younger attendees, shed light on the concerns facing the next generation of business leaders and underscored the importance of intergenerational dialogue in shaping the future of British business.' Chand Chudasama, Partner at Price Bailey, added: 'It was a fantastic evening and a rare opportunity to challenge and explore the political landscape with someone of Alastair's calibre. We tackled some of the most pressing issues facing UK businesses today, and it was encouraging to see such open and constructive dialogue.' Price Bailey's report, Bridging the Divide, is available to download from the Price Bailey website, here. Photo – – View original content:
The Herald Scotland
19-06-2025
- Business
- The Herald Scotland
Would many publicans have a drink with Sir Keir Starmer?
Hospitality has been in a serious huff with the UK Government since Ms Reeves announced whopping hikes in employer national insurance contributions, the national living wage, and the national minimum wage in the Autumn Budget. It warned at the time that the rise in labour costs, which according to UKHospitality will amount to a £3 billion rise in the industry's annual wage bill, would have a huge effect on jobs, growth, and investment. Now it appears those fears, which have been shared by other sectors such as retail, are beginning to be realised. Publicans are unlikely to glean any satisfaction from being able to say, 'I told you so'. A new analysis published by top 30 accountancy firm Price Bailey this week found that pub insolvencies surged in April - the month the increases in employer NICs and pay rates took effect - to the highest monthly total since last summer. The analysis found 67 pubs went out of business in April, the highest tally since July 2024 when 75 entered insolvency. The growing cost pressures on the industry have had an impact on consumers too, as the average price of a pint has steadily risen. The British Beer & Pub Association (BBPA) recently warned the average price of a pint would increase by as much as 21p as a result of the changes announced at the Autumn Budget, taking the average price from £4.80 to £5.01 (though in major cities the average price is significantly higher). The Office for National Statistics also tracks the average price of a draught pint and its most recent figures put the cost at 483p in January, following years of steady increases. After signs that the number of pubs entering insolvency had peaked in 2024 and was in decline by the end of that year and into the first quarter of 2025, Price Bailey said the number of pub insolvencies is ticking upwards again. 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge,' said Matt Howard, head of the insolvency and recovery team at Price Bailey. 'It was widely believed that pub businesses would initially find ways to absorb the additional payroll costs and that the full impact would only be felt much later in the year. That the impact has been so immediate shows that many pubs had already exhausted their financial buffers.' Mr Howard added: 'April's sharp rise in inflation, driven in part by rising energy costs, is adding to the misery of many publicans. One in five pubs are technically insolvent, and while it is possible to keep trading and salvage the situation, being hit with sharp payroll and energy price rises will prove too much for many of them.' The Price Bailey report came shortly before a survey published by UKHospitality, The British Institute of Innkeeping, the BBPA, and Hospitality Ulster on June 2 revealed that one-third of hospitality businesses are now operating at a loss. This was an 11 percentage point increase on the previous quarter. The survey also found that six in 10 operators have had to cut jobs amid the "devastating" impact of April's cost hikes, while 63% have reduced the hours available to staff as the industry has taken steps to mitigate the higher overheads. But signs of distress in the economy are not limited to hospitality. New research from R3, the UK insolvency and restructuring trade body, found insolvency-related activity hit a 29-month high in May as businesses faced challenges on a raft of fronts. R3 highlighted the hikes in employer NICs and national living and minimum wage among a host of factors that are weighing on businesses as its analysis found there were 141 cases of insolvency-related activity – including administrator and liquidator appointments with creditors' meetings – in Scotland in May. This was the highest number since the December 2022 figure of 142, and 30.6% up on April's 108. 'We have seen a substantial rise in insolvency-related activity in Scotland since the start of the year, but last month's rise to the highest point in more than two years is a reminder of just how tough trading conditions are,' declared Tim Cooper, immediate past president of R3 and a partner at law firm Addleshaw Goddard. 'Levels are now higher than they were for much of 2023 and for 2024, when many businesses were grappling with the aftermath of Covid and the impact of the cost of living crisis. 'A number of factors are likely contributing to the increase we're seeing, including a rise in MVLs (members' voluntary liquidations) from directors choosing to close their businesses in response to recent tax and policy changes, such as the increases to employers' national insurance and the minimum wage. 'We are also seeing a rise in winding up petitions as creditors take the lead from HMRC, which has become increasingly more willing to chase the debts it is owed. HMRC's more assertive stance seems to be influencing other creditors to follow suit, particularly where there are signs of persistent non-payment. 'This increase in insolvency-related activity also reflects the wider economic picture in Scotland. Business activity remains subdued, and firms continue to face persistent cost pressures, higher tax obligations, and weak demand. For some, the combination of these pressures is tipping already fragile businesses into formal insolvency processes.' Clearly, these are worrying times for businesses across a range of sectors and, for a UK Government that has made growth its top priority, it is showing little sign of delivering the kind of conditions in which business can thrive. The latest UK labour market review by the ONS, published on June 10, found the number of payrolled employees for May decreased by 109,000 on the month before. This was reportedly the largest monthly fall since the same period in 2020, amid the first Covid lockdown. The rate of unemployment was found to have increased to 4.6% in the three months to April, from 4.5% in the three months to March, reaching the highest level since the three months to July 2021. Pay growth also eased, the ONS found. Moreover, official figures published last week found the UK economy went into reverse in April, as gross domestic product fell by 0.3% month on month. The decline was worse than the 0.1% expected by most economists, and Liz McKeown, director of economic statistics at the ONS, noted declining output in both the services and the manufacturing sectors in April. While a modest contraction in GDP over a single month offers a limited window into the health of the UK economy, there is no doubt it took a little wind out of the sails of the Chancellor, who received some praise from the Scottish business community for the Government's Spending Review which she announced the day before. That included a thumbs-up from Scottish Chambers of Commerce on a range of measures, including a commitment to fund the Acorn carbon capture and storage project in Aberdeenshire, held up as the kind of initiative that will be key to Scotland's energy transition hopes. Scottish Chambers' chief executive Liz Cameron said Acorn had the potential to create 15,000 jobs in its construction and attract billions of pounds of private sector investment as she also welcomed a commitment to increase defence spending. Although these funding commitments are clearly important, the Acorn Project and moves to hike defence expenditure will mean little to the many business owners who are struggling to keep the lights on as costs continue to rise and economic growth flatlines. The sense that the UK Government is struggling to address the issues facing many businesses was summed up by the Scottish Hospitality Group and the Federation of Small Businesses in their responses to the Spending Review. Stephen Montgomery, director of the Scottish Hospitality Group, declared the review did 'absolutely nothing' to support the sector. He said: 'Today we heard all about the spending plans, however nothing about helping those who will pay for it through taxes. 'To help the economy to grow, you need business to grow, so today we yet again see the sector let down by Rachel Reeves.' The reaction was not much better from the FSB, which said the review left its members 'wondering when they will feel the benefits'. If the business community were to write a report card for Sir Keir and Ms Reeves for the 11 months they have been in office, the verdict would surely not be anything more positive than 'could do better'.
Scottish Sun
16-06-2025
- Business
- Scottish Sun
Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA
It comes amid warnings that rising costs would push the average price of a pint above £5 BITTER FOR PUBS Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) PUBS are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs. A jump in National Insurance (NI), the minimum wage, business rates and packaging taxes are costing the equivalent of 12 days' sales, the British Beer and Pub Association says. Sign up for Scottish Sun newsletter Sign up 1 Pubs are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs (stock picture) Credit: Alamy Boss Emma McClarkin called the situation 'indefensible' and urged immediate Government action. It comes after the BBPA warned that rising costs would push the average price of a pint above £5. The organisation reckons they would add 21p as boozers are forced to pass on some of the inflationary pressure to customers. Employer NI contributions rose from 13.8 to 15 per cent in April while the payment threshold dropped from £9,100 to just £500. The National Living Wage jumped from £11.44 to £12.21 per hour. These changes have seen insolvencies jump, with 67 pubs closing in April — the highest monthly figure since July 2024, according to accountancy firm Price Bailey. Meanwhile, 8,156 (21 per cent) of UK pubs are barely staying afloat. Matt Howard, head of insolvency at Price Bailey, said: 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge.' A Government spokesman said: 'We are a pro-business government.' RATES 'FREEZE' What is the Bank of England base rate and how does it affect me? INTEREST rates are expected to stay at 4.25 per cent after inflation rose in April, economists predict. Most believe the Bank of England's Monetary Policy Committee (MPC) will keep rates unchanged on Thursday. Since last August, the MPC has gradually reduced rates from a peak of 5.25 per cent. But inflation jumped to 3.5 per cent in April, later corrected to 3.4 due to data errors. METRO BOOST SHARES in Metro Bank have jumped by more than a tenth as investors welcome reports the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about taking it private. The discussions are said to be in early stages. Metro had a £925million rescue deal in 2023 and returned to profitability last year. GREAT ESCAPES GO UNDER TRAVEL firm Great Little Escapes has collapsed, leaving customers with axed holidays and uncertainty over refunds. The Berkshire-based company, which also operated under the names Your Holidays and Tunisia First, ceased trading as an ATOL holder on Friday. The Civil Aviation Authority issued a statement which said: 'We are currently gathering information from the company and will provide updates as soon as possible.' Customers have been advised not to submit claims yet, as they will not be processed at this time. Unlock even more award-winning articles as The Sun launches brand new membership programme - Sun Club.
