Author: Glenn

You may be able to have tax underpayments collected via your tax code when you are in employment or in receipt of a company pension. Instead of paying off debts in a lump sum, money is collected in equal monthly instalments over the tax year.

You can pay your self-assessment bill through your PAYE tax code as long as these conditions apply:

• You owe less than £3,000 on your tax bill (you cannot make a part payment to meet this threshold).
• You already pay tax through PAYE, for example you are an employee, or you receive a company pension.
• You submitted your paper tax return by 31 October or your online tax return online by 30 December. This means that that for the 2023-24 tax year you have until 30 December 2024 to file your online self-assessment returns in order to have the monies collected in the 2025-26 tax year starting on 6 April 2025.

HMRC will automatically collect what you owe through your tax code if you meet the three conditions set out above unless you have specifically asked them not to (on your tax return).

You will not be able to pay your tax bill through your PAYE tax code if:

• You do not have enough PAYE income for HMRC to collect it.
• You had paid more than 50% of your PAYE income in tax.
• You had ended up paying more than twice as much tax as you normally do.
• You owed £3,000 or more but made a part payment to reduce the amount you owe to less than £3,000.

Companies developing artificial intelligence (AI) to improve safety on construction sites, reduce time spent repairing the railways and cut emissions across supply chains are amongst a number of projects set to receive a share of £32 million in UK Government funding.

Announced 7 August 2024, almost 100 ground-breaking projects have been awarded financial backing as the government continues its mission to boost productivity and kickstart growth across the economy through AI, so everyone is better off.

A total of 98 projects from Southampton to Birmingham and Northern Ireland will receive funding, involving more than 200 businesses and research organisations spanning a range of sectors including public services, driving efficiencies and reducing administrative tasks.

As part of the government’s mission to build an NHS which is fit for the future, pharmacies that deliver prescriptions across the country are also set to benefit from this new financial support. A project led by Nottingham-based Anteam will see them collaborating with retailers and the NHS to improve the efficiency of their deliveries using AI algorithms. This technology will match the delivery needs of retailers and hospitals to existing delivery journeys, unlocking under-utilised capacity, cutting carbon emissions and delivering a better experience for patients.

The charity commission has offered the following guidance to charities following the recent public disorder events.

The main points are summarised below:

• Are you operating in an area which has seen or is at risk of unrest? If so and you wish to continue to operate what changes could be made to mitigate any risk to your staff, visitors or beneficiaries?
• Have you reviewed the entry points to your property for weaknesses should there be unrest? Can you restrict access/improve secure entry to the property?
• Are different entrances available?
• Do you have alternative exit routes from the property if required? Are these clear and communicated to staff visitors on arrival?
• Should an incident occur do you have a clear procedure in place for what staff / visitors should do to stay safe? Is everyone briefed on this procedure and is it clear who will issue instructions should an incident occur?
• Do you need to have first aid trained staff or volunteers onsite?
• Have you contacted the local police force community liaison team to agree contact points for sharing of specific risks or to seek specific advice and guidance on operating?

Some risks may be specific, or time bound such as an alert from police of a specific risk / threat based on their monitoring of social media or intelligence. You may therefore want to consider:

• Who in your charity / how your charity continually reviews the latest advice, guidance or alerts from police forces or other local authorities including monitoring of social media channels.
• If you are at higher risk do you need a procedure at the start of each day to assess risk and a clear channel or method to communicate with staff or beneficiaries prior to start of operations on whether or not they should attend site.
• Ensuring you have a clear process or nominated person responsible for acting upon any urgent alert or risk.

Charities should not hesitate to call emergency services if their staff, volunteers or beneficiaries face abuse, feel threatened, or are in danger.

A higher rate of CGT applies to gains on the disposal of residential property (apart from a principal private residence). In the Spring Budget 2024, the Chancellor announced a reduction in the higher rate that exists for residential property to 24% (from 28%) from 6 April 2024. These rates apply to higher rate taxpayers as well as to trustees and personal representatives. The lower rate that applies to basic rate taxpayers remain unchanged at 18% in the current 2024-25 tax year.

Most people are aware that they do not usually have to pay CGT when they sell their qualifying residential property used wholly as a main family residence. However other sales of property that are not a principle private residence (PPR) will be subject to CGT.

This includes:

• buy-to-let properties
• business premises
• land
• inherited property

The deadline for paying any CGT due on the sale of a residential property is 60 days. This means that a CGT return needs to be completed and a payment on account of any CGT due should be made within 60 days of the completion of the transaction. This applies to UK residents selling UK residential property where CGT is due. There are various reliefs available from CGT for the sale of qualifying business assets.

It was announced as part of the Spring Budget measures that the present favourable tax benefits presently allowed for the letting of properties as short-term holiday lets – known as the furnished holiday lettings (FHL) tax regime – is to be abolished from April 2025. The Labour government has confirmed that these changes will take effect as planned.

HMRC has now published a policy paper providing further details of how these changes will work in practice.

The policy paper states that the changes will remove the tax advantages that current furnished holiday let landlords have received over other property businesses in four key areas by:

• applying the finance cost restriction rules so that loan interest will be restricted to basic rate for Income Tax;
• removing capital allowances rules for new expenditure and allowing replacement of domestic items relief;
• withdrawing access to reliefs from taxes on chargeable gains for trading business assets; and
• no longer including this income within relevant UK earnings when calculating maximum pension relief.

After repeal, former FHL properties will form part of the person’s UK or overseas property business and be subject to the same rules as non-furnished holiday let property businesses.

There is also an anti-forestalling rule that prevents the obtaining of a tax advantage through the use of unconditional contracts to obtain capital gains relief under the current FHL rules. This rule applies from 6 March 2024.

The loss of the special tax regime for holiday lets is expected to have a significant effect on many of those involved with the short-term holiday rental business in the UK.