Author: md_admin

The Chancellor will deliver her Spring Statement to the House of Commons on Wednesday 26 March 2025.

Rachel Reeves confirmed the date to the House of Commons, telling MPs that the Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast to be published on the same day.

This is in line with the Budget Responsibility and National Audit Act 2011 which requires the OBR to produce two forecasts each financial year. This will be accompanied by a statement to parliament from the Chancellor.

A government statement said:

‘The Chancellor remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission.’

Internet link: GOV.UK

The UK economy shrank for the second month in a row in October, according to the Office for National Statistics (ONS).

Official figures showed a 0.1% drop in gross domestic product (GDP) for October. The economy had been expected to return to growth following a fall during September.

However, the ONS said that activity had stalled or declined, with pubs, restaurants and retail among the sectors reporting weak months.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:

‘With growth of just 0.1% in the three months to October and an unexpected fall in the monthly GDP, the UK economy was already fragile ahead of recent policy announcements.

‘The full impact of the Budget since then is yet to be seen. However, our research has already shown a spike in anxiety over tax and employment policy. Many businesses are telling us that increased costs are likely to have an impact on their investment and recruitment plans. Firms of all shapes and sizes are facing tough decisions in early 2025.

‘The Industrial Strategy due in the Spring has the potential to boost business growth for the long-term. Companies are also eager to see Government plans on business rates reform, trade and infrastructure.

‘Getting sustained economic growth will only be possible if the environment is right for businesses to invest, recruit and export.’

Internet link: ONS BCC

Cash use in the shops rose for a second year in a row in 2023 after a decade of falls, according to the British Retail Consortium (BRC).

Notes and coins were used in a fifth of transactions last year as shoppers found cash helped them to budget better, said the BRC.

Overall, customers visited shops more frequently but made smaller purchases. The total number of transactions rose from 19.6 billion to 21.0 billion while the average amount spent per transaction fell from £22.43 to £22.03.

Meanwhile, card fees paid by retailers continued to grow. The total amount paid by retailers to banks and card schemes rose by over 25% in 2023. This brought the total card fees paid to £1.64 billion.

Chris Owen, Payments Policy Advisor, British Retail Consortium said:

‘Persistent inflation and the cost-of-living crisis continued to affect households across the country and many consumers used cash to budget more effectively.

‘However, the dominance of card payments continues apace, accounting for over 85% of spending. Card fees continue to rise at a substantial rate and the Payment Systems Regulator (PSR) must act upon the harms it has identified in its current market reviews. It must move swiftly to reform the market and implement remedies including price caps on fees and price rebalancing measures.’

Internet link: BRC

More than 40,000 taxpayers completed their self assessment returns over the Christmas break, according to figures from HMRC.

On Christmas Day 4,400 people filed their tax return online while almost 12,000 submitted their tax return on Boxing Day.

Christmas Eve was the busiest day for returns over the festive period with 23,731 filing their returns.

Then numbers were released by the tax authority as it continues to encourage taxpayers to prepare and file their tax return ahead of the deadline on 31 January 2025.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘People who need to file a self assessment return and already have can enjoy the rest of the festive period knowing they’ve got it wrapped up for another year … for those who haven’t started yet, our online service is available 365 days a year so there’s still a chance to get it done. Go to GOV.UK and search ‘self assessment’ to access the online help and start today.’

Internet link: HMRC press release

HMRC is reminding people who pay tax by self assessment of the opportunity to spread the cost of their bill with the Time to Pay facility.

More than 15,000 self assessment customers have already set up a Time to Pay payment plan for the 2023/24 tax year to help spread the cost, according to the tax authority. And there is still an opportunity to sign up for such an arrangement.

HMRC says it offers these payment plans to support taxpayers unable to pay their tax bill in full and looking to manage their tax payments over regular monthly instalments.

The online deadline to file a tax return for the 2023/24 tax year and pay any tax owed is 31 January 2025.

Taxpayers who are unable to pay their tax bill in full, owe less than £30,000 and are eligible, can quickly and easily apply online without the need to contact HMRC directly. Those that owe more than £30,000 are still able to apply but would need to contact HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘We’re here to help customers get their tax right and if you are worried about how to pay your self assessment bill, help and support is available.

‘Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.’

Internet link: GOV.UK