The Chartered Institute of Payroll Professionals
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HMRC Publishes the 2019 to 2020 tax gap 17 September 2021
It is estimated that £35 billion in tax liabilities are not paid.
HMRC published the tax gap for 2019 to 2020, an estimated 5.3% of the total tax labilities for the year – this figure equates to £35 billion in unpaid taxes.
HMRC uses the tax gap as a tool to understand the scale of non-compliance. In the area of Income Tax, National Insurance and Capital Gains tax, the gap contained the biggest share of the total gap, with an estimated £12.6 billion unpaid in this area. Almost half of the total gap (43%) is attributed to small businesses.
The 2019 to 2020 tax year saw the gap rise by 0.2%, from £33 billion in the previous year.
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HMRC reiterate guidance to warn students of potential scams 23 September 2021
HM Revenue and Customs (HMRC) is warning university students in part-time jobs that they are at increased risk of falling victim to scams.
In 2021, higher numbers of students are going to university, with many students engaging in part time work as they study. For many, this could be their first job and their first interaction with HMRC.
HMRC is warning that in the past year, almost one million people have reported scams to HMRC. Students could be particularly vulnerable if they are unfamiliar with what genuine contact should look like.
HMRC has guidance to help individuals identify scam calls, emails and text messages and are reiterating the messages to encourage students to protect their information.
By June 2021, more than 680,000 students applied to university and over 900,000 held part time jobs during the 2020 to 2021 academic year.
CIPP comment Do you employ university students? The CIPP encourage payroll teams to communicate this message to their employees to help protect individuals from scams.
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MTD ITSA delayed until 2024 27 September 2021
Government announce one year delay on MTD ITSA.
Making tax digital for income tax self-assessment (MTD ITSA) was due to go live in April 2023. Yesterday (23 September 2021) the government announced that having recognised the challenges faced by UK businesses, and after listening to stakeholder feedback, MTD ITSA would go live in April 2024.
From April 2024, MTD ITSA will be mandatory for businesses and landlords with an income over £10,000 per annum. Pilot schemes are already underway and will be gradually expanded in the lead up to tax year 2024-2025.
The Chartered Institute of Payroll Professionals
Payroll: need to know
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