Background Simple Assessment is a way for HM Revenue & Customs (HMRC) to collect underpayments of tax from taxpayers with relatively straightforward tax affairs. By HMRC issuing a Simple Assessment to a taxpayer it means they are not required to complete a Self Assessment tax return. The types of income that are commonly dealt with under Simple Assessment include the state pension and...
Muras Matters: HMRC Online Service For Paying High Income Child Benefit Charge
Background Child benefit is paid to households with eligible children. If the claimant or their partner has adjusted net income over the threshold amount, the higher earner will need to repay some or all of the child benefit. This is collected by HM Revenue & Customs (HMRC) and is known as the high income child benefit charge (HICBC). Where this has occurred the higher earner...
Muras Matters: HMRC Restarts Direct Recovery of Debts
Background HM Revenue & Customs (HMRC) has recently confirmed that following a four-year hiatus it has now restarted the use of its Direct Recovery of Debts (DRD) powers for individuals and businesses who do not pay the tax they owe. HMRC paused the use of DRD during the Covid-19 pandemic and has now returned to using this method in a ‘test and learn’...
Muras Matters: Self-Assessment – 5 October Registration Deadline
Background An individual must notify HM Revenue & Customs (‘HMRC’) by 5 October following the end of a tax year if they have a liability to tax and are not already registered for Self-Assessment. Failure to notify by this date can result in penalties. Anyone who has a new source of income for the year ended 5 April 2025 and is not...
Muras Matters: Tax Enquiries, Investigations and Compliance Checks
Background HM Revenue and Customs (HMRC) is continually trying to ensure everyone pays ‘the correct amount of tax’ and, using their rapidly increasing powers, are getting tougher on non-compliant tax payers. If HMRC look into your tax affairs, this may be called an enquiry, an investigation, an intervention or a compliance check. Being selected for enquiry or even going through a routine compliance...
Muras Matters: 60-day CGT Reporting Requirements
Background Since April 2020, taxpayers that have a Capital Gains Tax (CGT) liability from the disposal of UK residential property have been required to complete a “CGT on UK Residential Property Return” in order to declare and pay the tax due within 60 days of completion. This reporting requirement means that upon a potential disposal, taxpayers must assess their CGT position as...
Muras Matters: Company Cars Changes to Advisory Fuel Rates
This Bulletin is aimed at company car drivers (and their employers) who are not provided with fuel for private mileage HM Revenue and Customs (HMRC) have updated their advisory fuel rates for company cars with effect from 1 September 2025. The rates are intended to give guidance to employers about what is an acceptable fuel allowance to reimburse employees for use of...
Muras Matters: Corporation Tax Payment Reminders To Stop
Background HM Revenue & Customs (‘HMRC’) generally issue a corporation tax payment reminder about a month before the normal payment date, unless the company has already submitted its corporation tax return. Where a company has an agent appointed with HMRC this reminder will go to the agent only. HMRC is keen to encourage companies and agents to use its digital services and...
Muras Matters: Government Confirms Changes to Inheritance Tax Reliefs
Background The Government has recently published draft legislation confirming that the changes to Inheritance Tax (IHT) Business Property Relief (BPR) and Agricultural Property Relief (APR) announce in the Autumn 2024 Budget are to proceed with effect from 6 April 2026, largely as previously announced. Whilst there is a lot of detail in the draft legislation, it has confirmed that the rate of...
Muras Matters: Jointly Held Property and Form 17 Declaration
Background It is relatively common for an asset, such as an investment property, to be jointly held in the names of a married couple (or civil partners). The general rule for such assets is the individuals are treated for income tax purposes as being beneficially entitled to the property income in equal shares. This is sometimes referred to as the ’50:50 rule’. However,...