Did we hear the word Tax Cuts?

I expect you thought I would have my nose to the grindstone with preparing the last minute tax returns ahead of the filing date at the month end, however, there has been a lot going on this week and I wanted to take the opportunity to keep you updated.

You never know I might take a week off in February.

Tax Cuts

Now that’s not a phrase we have heard for a while, to be honest most of the articles I read and watched last year predicted Tax Rises.?

However, this week both the Chancellor Jeremy Hunt and the Shadow Chancellor Racheal Reeves hinted towards the alternative.

In an interview with The Telegraph following a speech in Davos Racheal Reeves said “my instinct is to have lower taxes’, even hinting that this would extend to ‘earners above ￡100,000.However, how do we know this is true, as many an incoming Chancellor has made similar promises before an election only to find that once they have full access to the accounts, the alternative is different.

However her response was interesting and certainly indicated the way ahead “I know that the inheritance is going to be tough but if the route to better public services and higher living standards was through higher taxes, we’d have them by now because the tax burden is at a 70-year high and is indeed forecast to rise in each year of this parliament.’

Also speaking at The World Economic Forum in Davos this week, Jeremy Hunt was almost unrecognizable from the message he delivered when landing the role of Chancellor “I believe fundamentally that low tax economies are more dynamic, more competitive and generate more money for public services like the NHS.’. You may even question the possibility of a U turn and even a hint of picking up the mantle of his predecessor Kwasi Kwarteng or are w getting ahead of ourselves?

One thing is for sure the rumors of an Autumn election continue to increase, and if this is the case it could possibly allow the government not only to hold a Budget on the 6th March, but, also a further Autumn Statement before an election which would provide them with the opportunity to make three series of tax cuts (maybe?).

As always I would love to hear your thoughts.

More than 5.7 million

HMRC press office released a statement recently confirming that only 6.3 Million self-assessment tax returns had been received in the previous nine months, which means that the anticipated outstanding tax returns which is estimated to be 5.7 million, would need to be submitted in under one month to prevent the initial late filing penalty charge of ￡100 arising.

Why are people leaving there tax returns submissions so late?? Possibly because there is a fear of the tax liability, which I appreciate can be incredibly daunting.? That said once you know the tax liability you can address it and if the tax return is filed with HMRC at least you will not have fines to worry about as well.

You never know, you may not owe as much tax as you feared and you may be even due a refund, I definitely have had more clients receiving tax refunds this year than ever before.

As HMRC I.T. are involved in industrial action this month I am still asking the question, will this impact filings and could an extended filing date be put into place?

Happy New Year ??

I thought I had made a mental note not to say that for a few more hundred days.

That said according to HMRCs website not everyone celebrated the New Year in the same way, 127 customers saw in the New Year by filing their tax return between 00:00 and 00:59 on 1 January 2024.

Even more completed theirs later in the day with?23,724 customers filing with the peak being between15:00 and 15:59, when 2,354 customers filed.

However, a staggering 25,593 customers filed their tax return on New Years Eve, with the most popular time being between 12:00 and 12:59, when 2,677 customers filed.

When was your tax return filed?

Tax Tip

Have you visited the Tax Matters website recently? I have just introduced a new blog section that is already starting to fill up. This month their are articles on tax jargon and the truth about the true cost of late filing penalties, and as soon as I work out how to embed video there will be loads of these too. Leave a comment and let me know what you think.

Understandably, I still haven't got around around to making any new Tax Tip videos this month, but watch out for next month and let me know If you have any personal tax questions that you would like me to answer if so please drop me a Direct Message.

That said here is a video from last year discussing what is a UTR numbers which is still a frequently answered question

Pleas remember to LIKE, COMMENT and SUBSCRIBE to the channel.

Keep in touch

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Thank you for your time, and if you think I might be able to assist you a friend or family member, either DM or contact me on [email protected] 01442 828006.