We had two Budgets in 2017 and the Spring Statement is planned for Tuesday 13 March. The Chancellor Philip Hammond has previously stated that at the Spring Statement he will respond to the Office for Budget Responsibility forecast, consider longer-term tax challenges and start consultations on how they can be addressed. The government has the option to make immediate changes to tax policy at the Spring Statement if the economic circumstances require it.

The revised timetable of an Autumn Budget followed by a Spring Statement means changes to the legislative timetable which are set out in the link below.

We will keep you informed of pertinent Spring Statement announcements.

Internet link: GOV.UK new budget timetable

Derek Mackay, Scottish Finance Secretary, has made a change to the proposed Scottish income tax bands for 2018/19 which he announced in December 2017 in the Scottish Draft Budget.

The change is being made to ‘remove an anomaly that meant some higher rate taxpayers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance’.

Scottish taxpayers income tax rates on income other than savings and dividend income are now expected to be as follows:

Confirming the changes during the Stage 1 of the Budget debate, Mr Mackay said:

‘As a parliament of minorities, we must work across the chamber to find compromise and consensus in order to give support, sustainability and stimulus to our economy and to our public services… Our changes to tax ensure Scotland has a progressive tax system – with 70% of taxpayers paying less next year than they do currently and 55% paying less than they would across the rest of the UK – while businesses benefit from support for investment.’

Internet link: GOV.SCOT/news

HMRC have released the latest list of imaginative excuses made by individuals who failed to submit their self assessment return by 31 January deadline in 2017. Excuses include alien sightings and being too busy touring with a one-man play.

HMRC’s annual list of outlandish excuses is used to publicise the self assessment deadline of 31 January following the end of the tax year. An automatic £100 penalty applies to those who have the obligation to complete a return and miss the filing deadline, regardless of whether the individual has a tax liability to pay or not.

Angela MacDonald, HMRC’s director general of customer services, said:

‘Each year we’re making it easier and more intuitive for our customers to complete their tax return, but each year we still come across some questionable excuses, whether tha’’s blaming a busy touring schedule or seeing aliens.’

Here are some of the recent excuses:

1. I couldn’t file my return on time as my wife has been seeing aliens and wo’’t let me enter the house.
2. I’ve been far too busy touring the country with my one-man play.
3. My ex-wife left my tax return upstairs, but I suffer from vertigo and cna’t go upstairs to retrieve it.
4. My business doesn’t really do anything.
5. I spilt coffee on it.

HMRC have also released details of some of the weirdest expense claims which include:

1. A three-piece suite for my partner to sit on when I’m doing my accounts.
2. Birthday drinks at a Glasgow nightclub.
3. Vet fees for a rabbit.
4. Hotel room service – for candles and prosecco.
5. £4.50 for sausage and chips meal expenses for 250 days.

If you have any queries on tax matters please contact us.

Internet link: GOV.UK news

HMRC are urging people to stay safe from a phone scam that is conning elderly and vulnerable people out of thousands of pounds.

The scammers are preying on victims by cold calling them and impersonating an HMRC member of staff. They advise the victim that they owe a large amount of tax which they can only pay off by digital vouchers and gift cards, including Apple’s iTunes vouchers.

The scam victims are told to go to a local shop, to purchase vouchers, and then read out the redemption codes to the scammer. The conmen then sell on the codes or purchase high value products, all at the victim’s expense.

According to HMRC the scammers frequently use intimidation to get what they want, threatening to seize the victim’s property or involve the police. The use of vouchers is an attractive scam as they are easy to sell on and hard to trace once used.

HMRC have confirmed that they would never request the settling of debt through such a method.

According to figures from Action Fraud, the UK’s national fraud reporting centre, between the beginning of 2016 and August this year there have been over 1,500 reports of this scam, with the numbers increasing in recent months. The vast majority of the victims are aged over 65 and suffered an average financial loss of £1,150 each.

HMRC is working closely with law enforcement agencies, Apple and campaign groups to make sure the public know how to spot the scam and who to report it to.

HMRC’s Director General of Customer Services, Angela MacDonald, said:

‘These scammers are very confident, convincing and utterly ruthless. We don’t want to see anyone fall victim to this scam just before Christmas. That’s why we’re working closely with crime fighters to ensure taxpayers know how to avoid it.

These scams often prey on vulnerable people. We urge people with elderly relatives to warn them about this scam and remind them that they should never trust anyone who phones them out of the blue and asks them to pay a tax bill. If you think you’ve been a victim you should contact Action Fraud immediately.’

Internet link: GOV.UK news

With many individuals having tax payments to make at the end of this month it is important to be aware that HMRC have announced that they will no longer accept payments made at the Post Office or by credit card.

HMRC have announced that with effect from 15 December 2017 it will no longer be possible to make payments to HMRC at a post office. The reason for this change is that contract with Santander, which allowed this method of payment, has expired. HMRC are advising that where electronic payment is not possible, payments can still be made at bank branches using a payslip and payments for self assessment income tax can still be posted to HMRC.

From 13 January 2018 it will no longer be possible to pay HMRC using a personal credit card. The timing of this change coincides with the date from which HMRC will no longer be permitted to charge fees for payment by credit card.

Internet link: ICAEW blog