HMRC launches VAT Registration Estimator

HMRC has introduced a digital tool to assist businesses in estimating the impact of VAT registration on their operations. The VAT Registration Estimator helps businesses understand when their turnover might require VAT registration and its effect on profitability.

A business must register for VAT if:

• The total VAT taxable turnover for the previous 12 months exceeds £90,000.
• Turnover is expected to surpass the £90,000 VAT threshold within the next 30 days.
• They are an overseas business supplying goods or services to the UK and expect to exceed the VAT threshold within the next 30 days.

Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, commented:
“We know that the majority of our customers want to get their tax right. We have listened to businesses, and this new tool is designed to help them understand VAT registration, including when they might be required to register.”

Source:

• GOV.UK

HMRC to send simple assessment tax statements to pensioners

HMRC will be issuing Simple Assessment tax statements to pensioners in the coming weeks. The combination of frozen tax thresholds and a significant increase in the state pension has resulted in many more pensioners becoming liable for income tax for the first time.

The previous government froze the personal allowance at £12,570 until 2028. The full new state pension saw a 10% increase in April 2023, rising to over £10,600 annually, followed by another 8.5% increase in April 2024, taking it to more than £11,500 per year.

HMRC has stated that pensioners will receive a Simple Assessment if there is an underpayment of income tax that cannot be collected automatically via PAYE, and they are not subject to income tax self-assessment.

An underpayment of income tax can occur for pensioners receiving income from the State Pension, occupational pensions, employment pensions, and most taxable state benefits, as well as those with up to £10,000 of untaxed income (e.g., from savings or investments).

HMRC will use existing information and data supplied by banks and building societies about individuals’ income and tax situations. The tax authority will calculate any tax owed or refunds due, and the Simple Assessment tax statement will display the calculation.

Taxpayers are advised to check their Simple Assessment statements for accuracy before paying any tax due.

Please contact us for advice on Simple Assessment matters.

Source:

• GOV.UK

Michelle Martin

Managing Director | Accace Adept

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