We wish all our clients and intermediaries a wonderful Christmas and Happy New Year. Thank you for being part of our journey this year, and we look forward to continuing to work together in 2025.
Please note we are taking a well-earned rest for the festive period, finishing at noon on Tuesday, 24 December 2024 and not re-opening until Thursday, 2 January 2025. Our office and telephone line will be closed during this period and emails will be responded to in the New Year.
As the festive season approaches, we want to share a meaningful way we're celebrating this year. In lieu of sending Christmas cards, we have donated to the Sue Ryder Foundation. Sue Ryder's dedicated hospice team provides exceptional care and support for individuals with life-limiting conditions. Their work ensures that people receive the care they need, when they need it, right within their local communities. By contributing to this cause, make a positive difference for those in need.
Before the Christmas break, the Harbour Key team is working diligently to finalise client accounts that must be filed by 31 December (effectively 23 December) and those requiring to make corporation tax payments. Once the 31 December deadline is behind us, our focus after the Christmas break will shift to preparing for the 31 January self-assessment filing deadline.
Each year, meeting this filing deadline becomes increasingly challenging as UK tax regulations grow more complex, making tax reporting more demanding. Preparing tax returns for the clients we support often involves extra effort to determine what needs to be reported and how best to report to HMRC.
We apologise for those who feel that our service has been slower than in previous years, which is down to a number of reasons:
- Our client base has evolved, with an increase in 31 December year-ends. This shift means that clients with year-ends later in the year are now being started later than usual;
- The 30 October Budget created a lot of work in advance, as due to the uncertainty of what was going to happen, there was a significant increase in tax planning work.
CHELTENHAM GROWTH HUB
In November we attended the opening of the Cheltenham Growth Hub, at which one of our client’s was showcased. Growth Hubs work with partners to bring together the best of national and local support from the public and private sectors, academia to help business owners with management & leadership, skills and employment, access to finance, innovation, internationalisation. Although a lot of counties lost their Growth Hubs, when the previous Government made changes to funding, many counties including Gloucestershire retained theirs, with the county having six Growth Hub centres.
TAX INCREASES!!
Not to keep going back to the Budget, but Rachel Reeves has indicated in Parliament that future tax increases cannot be ruled out, saying: “I can't write five years' worth of budgets in just the first five months of government.” Following the Chancellor’s first Budget, which raised taxes by £40bn, she described it as a “once-in-a-Parliament” fiscal event aimed at addressing the previous administration’s mismanagement. Despite her assurances, uncertainty remains as the Prime Minister acknowledged that unforeseen circumstances could necessitate changes in tax policy. Watch this space!
GIVE YOUR BUSINESS A REVIEW
With the Christmas holidays approaching, for those who have the opportunity, it is a good time during the holiday season to step out of business and have look at your business. Take a step back, review how the business is working (review how you work in the business!), what are your goals/ambitions for 2025 and take a look at some common problems/issues we flag to our business clients on a regular basis which all too often are put on the backburner using the excuse that “I am too busy!” This year with the budget announcements re increases in minimum wage, and employer National Insurance, understanding the impact of these increases, and how to deal with them should be looked at.
There is always the business plan that you drafted many years ago! When did you last look at it and see what you planned? What has happened since? Does it need rewriting now the business has grown, developed or changed direction?
Below is a link to our suggestions for areas to review, consider, or update:
You can explore these recommendations here!
Pension providers have been warned by HMRC that they should not be letting savers put their tax-free lump sums back in their retirement pots, contradicting rules issued by the Financial Conduct Authority. HMRC advised that it was aware that savers had been asking to return their tax-free lump sums following the Budget, having withdrawn it amid fears the Chancellor could reduce or abolish the allowance. HMRC now says cooling-off periods do not apply under the circumstances, adding: “The payment of a tax-free lump sum cannot be undone and the member’s lump sum allowance will not be restored”.
FARMING AND CONNECTED TECHNOLOGIES FORWARD INNOVATON CHALLENGE
Are you developing a product or service focusing on agriculture, or environmental monitoring? Do you have a product or service in development, or a proven technology ready to explore new markets?
The Environmental Space Living Lab (ESLL) is calling for applications to the Farming Forward Innovation Challenge, with up to £45,000 in funding available across three tailored support packages. This challenge supports innovations that tackle sustainability, productivity, and transparency in agriculture and food supply chains.
Find out more HERE!
INCREASE IN TAX SCAMS
With the self-assessment season gathering pace, HMRC has warned taxpayers to be extra vigilant as 145,000 scam referrals for fake rebates and demands for tax were identified in the last year. HMRC has urged taxpayers to be particularly cautious about refund scams as the 31 January tax return deadline draws closer.
Fraudsters are targeting people with offers of tax refunds or demanding payment of tax to get hold of personal information and banking details. Around half of all scam reports (71,832) in the last year were fake tax rebate claims. HMRC warned: ‘If someone receives communication claiming to be from HMRC that asks for their personal information or is offering a tax rebate, check the advice on gov.uk to help identify if it is scam activity.’
It is also important to note that HMRC will never leave voicemails threatening legal action or arrest or ask for personal or financial information over text message, only fraudsters and criminals will do that.
HMRC will not contact taxpayers by email, text, or phone to notify that a refund will be paid or to recommend making a claim. Anyone who is due a refund from HMRC can claim it via their online HMRC account or the free and secure HMRC app.
Plus we tell you if you are due a tax repayment!
Be vigilant! It is important to take a moment to think before parting with money or information, and always use strong and different passwords on all accounts so criminals are less able to hack into personal accounts.
DATES FOR YOUR DIARY
31 January 2025 – Self-Assessment deadline!
Should you wish to speak with us about a specific matter, or just to be a sounding board or for a chat, please do not hesitate to give us a call on 01452 713277
