Welcome to the first newsletter for 2024.

In terms of useful information this month’s news includes more on the HMRC mobile app, including what kind of information it provides. Find out about the government’s Time to Pay scheme if you need time to pay your tax bill. If you provide living accommodation for employees we cover some tax implications you should be aware of. The extended Help to Save scheme is also highlighted, of particular interest to those on low incomes. January’s newsletter ends with a list of financial deadlines and dates taking us up to mid-February.

January is the time for planning and being resolute about having a business that serves you well. We can help with all aspects from financial forecasting to business direction. We are here as your sounding board and general support so do get in touch if you think we can help.

Obtaining the HMRC mobile app

HMRC’s free tax app is available to download from the App Store for iOS and from the Google Play Store for Android. The latest version of the app includes some updated functionality to update your name, save your National Insurance number to your digital wallet and to obtain help from HMRC's digital assistant.

The APP can be used to see:

your tax code and National Insurance number
your income and benefits
your income from work in the previous 5 years
how much you will receive in tax credits and when they will be paid
your Unique Taxpayer Reference (UTR) self-assessment
how much self-assessment tax you owe
your Child Benefit
your State Pension

The app can also be used to complete a number of tasks that usually require the user to be logged on to a computer. This includes:

get an estimate of the tax you need to pay;
make a self-assessment payment;
set a reminder to make a self-assessment payment;
report tax credits changes and complete your renewal;
access your Help to Save account;
using HMRC’s tax calculator to work out your take home pay after Income Tax and National Insurance deductions;
track forms and letters you have sent to HMRC;
claim a refund if you have paid too much tax;
update your name and / or postal address;
save your National Insurance number to your digital wallet; and
choose to be contacted by HMRC electronically, instead of by letter.

Help to pay your tax next month

If you are having trouble paying your tax on time you may be eligible to receive support from HMRC by applying for an instalment payment plan. An online payment plan for Self-assessment tax bills can be used to set up arrangements for paying tax liabilities of up to £30,000.

The large majority of taxpayers, who are due to make payments on 31 January 2024, could qualify to implement a Time to Pay arrangement online.

Taxpayers that want to use the online option must have filed their latest tax return within 60 days of the payment deadline and intend to pay their debt within the following 12 months or less. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without speaking to an HMRC adviser.

Taxpayers with Self-assessment tax payments that do not meet the above requirements need to contact HMRC to formally request a Time To Pay arrangement. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

HMRC will only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the future. If HMRC do not think that more time will help, they can require immediate payment of a tax bill and start enforcement action if no payment is forthcoming.

Tax exempt accommodation costs

There are special rules for the provision of living accommodation for employees. In most cases, employees will pay tax on any living accommodation provided by

an employer unless they qualify for an exception.

However, where an employee qualifies for an exemption, there is no tax to pay on the provision of living accommodation. The definition of living accommodation includes houses, flats, houseboats, holiday homes and apartments. It does not include hotel rooms or board and lodgings.

An exception for living accommodation will usually apply in the following cases:

If it is domestic or personal
Accommodation is exempt if both:
you are an employer who is an individual, for example a sole trader; and
you are providing it for someone because they are a close relative - even if they happen to work in your business.
If it is provided by a local council
Accommodation is exempt if a local council provides it on the same terms that it provides housing to non-employees.
If it is necessary or usually provided for the job
If it is needed for security

Other charges and costs

If the accommodation you provide is exempt, you do not have to report Council Tax, water and sewerage charges to HMRC, or pay National Insurance and tax.

Help to Save scheme

The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.

This means that account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for four years from the date the account is opened. The scheme is open to most working people who receive Working Tax Credits or Universal Credit.

Almost 450,000 people have opened Help to Save accounts since the scheme was launched in September 2018 and March 2023, with nearly £372.5 million paid into accounts during that time. This has seen the government award £146 million in bonus payments.

The scheme had been due to end in September 2023 but was extended by 18 months, until April 2025. The extension was announced as part of the Spring Budget measures earlier this year.

Tax Diary January/February 2024

1 January 2024 - Due date for Corporation Tax due for the year ended 31 March 2023.

19 January 2024 - PAYE and NIC deductions due for month ended 5 January 2024. (If you pay your tax electronically the due date is 22 January 2024).

19 January 2024 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2024.

19 January 2024 - CIS tax deducted for the month ended 5 January 2024 is payable by today.

31 January 2024 - Last day to file 2022-23 self-assessment tax returns online.

31 January 2024 - Balance of self-assessment tax owing for 2022-23 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2023-24.

1 February 2024 - Due date for Corporation Tax payable for the year ended 30 April 2023.

19 February 2024 - PAYE and NIC deductions due for month ended 5 February 2024. (If you pay your tax electronically the due date is 22 February 2024)

19 February 2024 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2024.

19 February 2024 - CIS tax deducted for the month ended 5 February 2024 is payable by today.

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