The government has extended the voluntary national insurance deadline to give taxpayers more time to fill gaps in their contributions and boost their state pensions.

The extension comes after members of the public voiced concerns over the previous deadline of 5 April 2023.

As part of transitional arrangements to the new state pension, taxpayers have been able to make voluntary contributions to any incomplete years in their national insurance record between April 2006 and April 2016. After an increase in customer contact, the government has extended the deadline to 31 July 2023 to ensure people have time to make their contributions.

The extension of the deadline was announced via a written Ministerial Statement, and HMRC is urging taxpayers to ensure they do not miss out.

Individuals with gaps in their national insurance record from April 2006 onwards now have more time to decide whether to fill the gaps to boost their new state pension. Any payments made will be at the lower 2022-2023 tax year rates.

Victoria Atkins, the Financial Secretary to the Treasury, said:

‘We’ve listened to concerned members of the public and have acted. We recognise how important state pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their national insurance record to help bolster their entitlement.’

Internet link: HMRC website

Two freeports have been confirmed for Wales by the UK and Welsh governments.

Celtic Freeport, covering Milford Haven and Port Talbot, and Anglesey Freeport will each be backed by £26 million in seed funding by the UK government.

The sites were chosen to exploit opportunities from renewable energies and the government said they would ‘make a significant contribution to achieving the UK’s net zero ambitions’. They will aim to attract £5 billion in private and public investment and create over 20,000 high-skilled jobs by 2030.

Freeports benefit from a range of subsidies, including tax reliefs, customs advantages, reduced business rates, planning, regeneration and trade and investment support.

Tax incentives include enhanced capital allowances, relief from stamp duty land tax and reduced employer national insurance contributions (NICs) for new employees.

First Minister of Wales, Mark Drakeford, said:

‘The Welsh government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future. The designation of these sites as Wales’s first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years.

‘The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.’

Internet link: GOV.WALES

The end of the Energy Bill Relief Scheme (EBRS) on 1 April could threaten the future of hundreds of thousands of small firms, according to research by the Federation of Small Businesses (FSB).

The Energy Bill Discount Scheme (EBDS) offers a far lower level of support for small businesses.

Although market prices have stabilised for those fixing their contracts now or those who are on variable tariffs, businesses that fixed last year will see huge increases as they are locked into a high price before the government’s relief.

A business paying £24,528 per year for energy under the old government support scheme will now pay £82,539 under the new scheme.

The FSB is calling for small firms to be allowed to renegotiate their energy contracts that were fixed last year. It is also calling for additional support for businesses to become more energy efficient.

Tina McKenzie, Policy Chair at the FSB, said:

‘The jump in energy bills on April Fool’s Day won’t be a laughing matter but will be a shock to hundreds of thousands of small businesses, who signed up to fixed contracts when the government discount was guaranteed under EBRS.

‘There’s much that could and should be done rather than leaving small firms high and dry. Allowing the most vulnerable small businesses to renegotiate or ‘blend and extend’ their energy contracts to better reflect lower wholesale energy prices is the least the government and energy suppliers could do.’

Internet link: FSB website

A record 11.7 million self assessment taxpayers submitted their tax returns by the 31 January deadline, HMRC has revealed.

The final day for self assessment returns saw 861,085 customers file online to meet the deadline, some with minutes to spare. There were 36,767 customers who filed in the last hour before the deadline, but the peak hour for filing on the day was between 4pm and 4:59pm, when 68,462 customers submitted their tax return.

More than 12 million customers were expected to file a self assessment tax return for the 2021/22 tax year. HMRC is urging customers who missed the deadline to submit theirs as soon as possible or risk facing a penalty.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘Thank you to the millions of customers and agents who got their tax returns in on time. Customers who have yet to file, and who are concerned that they will not be able to pay in full, may be able to spread the cost of what they owe with a payment plan.’

Internet link: HMRC press release