Tips for submitting self assessment tax returns
HMRC has published its top tips for taxpayers for filing the 2024/25 income tax self assessment (ITSA) tax return. The tips include guidance on what information will be needed, how HMRC’s app and tools can help, and the ITSA tax return criteria. ICAEW’s recent article Get ahead with 2024/25 tax returns may also be of interest. It covers key changes for 2024/25 and gives tips on preparing for 2025/26.
Separately, HMRC has reported that a record number of taxpayers (299,419) submitted their return for 2024/25 in the first week of 2025/26.
R&D tax relief: sale of goods by mail order
HMRC is writing to companies that sell goods by mail order or on the internet to warn them that they may not be eligible to claim research and development (R&D) tax relief. HMRC says that companies may get calls from third parties encouraging them to submit a claim for R&D tax relief. However, HMRC believes that it is unusual for companies in this sector to meet the criteria for making a successful claim.
Employment status: hair and beauty industry
HMRC has published guidance to help people working in the hair and beauty industry to determine their employment status. The guidance includes a table setting out common signs of employment and self-employment and a link to HMRC’s Check employment status for tax (CEST) tool. It also includes guidance on the VAT position for a salon or barbershop which rents out chairs.
HMRC interest rates
HMRC’s interest rates on underpaid and overpaid tax and duties are linked to the Bank of England (BOE) base rate. On 8 May 2025, the BOE base rate was cut by 0.25 percentage points, to 4.25%.
HMRC has updated its guidance to include the new rates applying from:
- 19 May 2025 for the purpose of corporation tax quarterly instalment payments; and
- 28 May 2025 for other payments of tax and duties.
The headline rate of interest charged by HMRC on most underpaid taxes and duties will fall from 8.5% to 8.25% from 28 May 2025.
Read more about recent changes to HMRC interest rates
Report on the economic crime levy
HM Treasury has published a report on the economic crime levy for 2023-24. The government says that the levy “has achieved its objective of providing a new, sustainable source of funding for investment to tackle money laundering and ensure delivery of key reforms to tackle economic crime”. The levy raised approximately £90m in 2023-24 and, following changes announced at the Autumn Budget 2024, is expected to raise around £115m per year for 2025-26 onwards.
Participate in an international study
A team of researchers is looking for UK practitioners to participate an international study on tax advisers. The purpose of the research is to gain a deeper understanding of tax advisers and their role within the tax systems of different countries, including the UK. The team is particularly interested in hearing from sole practitioners and those working in small practices, as well as from professionals who cater for individual clients or the small or medium-sized enterprise market. However, anyone willing to offering to share their insights is invited to participate.
International tax round-up
CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. This includes an update on a forthcoming meeting of EU finance ministers. Topics for discussion at the meeting include the proposed directive concerning VAT rules for distance sales of imported goods and an initiative to examine the role of tax policy in shaping the asset management landscape across Europe.
Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.