Customers have until 5 April 2025 to fill gaps in their National
Insurance (NI) record dating back to 6 April 2006. After this
date, payments can only be made for the previous six tax
years.
Customers can check their State Pension forecast and find out
if they might benefit from paying to fill NI gaps online or in the
HMRC app. Guidance on how to download the HMRC app is
on GOV.UK.
To avoid delays in allocating payments to the NI record, we
recommend customers use the ‘pay by bank account’ option in
our online service. This payment method is fast, secure, and
designed to prevent common errors that can occur during
payment.
Errors and delays are more likely when paying outside of our
service. For example, if the wrong amount is paid – even by a
penny – the payment must be reviewed and the NI record
updated manually, which can take up to eight weeks.
New evidence requirements when claiming for
employment expenses
To prevent ineligible claims for tax relief for employment
expenses, customers now need to provide supporting evidence.
We want to make sure that customers get the tax relief they
are entitled to in as straightforward a way as possible.
However, we also need to make sure that we identify where
customers are not eligible and prevent them receiving tax
repayments they are not entitled to.
Customers who wish to claim tax relief for employment
expenses can submit their claim and evidence online or by
post.
More information about the evidence required to claim
PAYE (P87) employment expenses is on GOV.UK.
Further advice about claiming tax relief for expenses can
be found via HMRC’s ‘Don’t Get Caught Out’ campaign
webpage.
Investment Zones – supporting economic growth
Investment Zones can benefit from £160 million of spending support
and tax reliefs over 10 years. Meanwhile, the government has committed to providing £150 million for an Enhanced Investment
Zone in Northern Ireland.
Some Investment Zones will include designated special tax
sites — defined areas where eligible businesses can
claim a range of tax reliefs. Further information about
designated special tax sites can be found on GOV.UK.
Designed to promote new investments in sectors vital to
the UK’s industrial strategy, Investment Zones also aim to
create skilled jobs.
To help businesses understand the potential benefits, we have published an Investment Zones information pack and additional guidance on GOV.UK.
Further details on the Investment Zone proposals in Scotland,
Wales, and the Enhanced Investment Zone in Northern Ireland
will be provided in due course.
Find out more about Investment Zones and how they could
support economic growth by visiting GOV.UK.
Get help with Basis Period Reform
From April 2024, sole traders and partners in a business will
have to report their profits on a tax year basis, if they don’t do
so already. This is known as Basis Period Reform.
Our ‘get help with basis period reform’ tool allows customers
to request their overlap relief figures for Basis Period Reform.
If they have applied on or before the filing deadline of 31
January 2025 and have not received a response from us,
they have until 28 February 2025 to file their return without
incurring a late filing penalty.
They should enter a provisional estimated figure if they do not
know the actual figure. Once they have their final overlap relief
figure they should amend their return. Interest will still accrue
from 1 February 2025 on outstanding amounts of tax.
Customers can get help with Basis Period Reform to calculate
their provisional figure and get support with amending their
Self-Assessment tax return on GOV.UK.
Test the new online pay calculator for umbrella
company workers
We are inviting businesses and umbrella company workers to
test a new online calculator that estimates their take-home pay.
This tool, confirmed in the 2024 Autumn Budget, allows users
to input payslip information to work out take-home pay and verify deductions.
It can also be used to help employment businesses understand
the pay of the umbrella company workers they supply.
The calculator breaks down key elements including assignment
rates, gross and net pay, and standard deductions such as
Income Tax, NICs and pension contributions.
Umbrella company workers can test the online calculator to
work out their pay from an umbrella company on GOV.UK.
The tool is still being tested – you can help shape and improve
the tool by sharing with your networks and submitting feedback
directly through the calculator.
Update on new data requirements for employers
Plans announced under the previous government which
would have required employers to provide more detailed
employee hours data, through PAYE Real Time Information
(RTI) returns from April 2026, have been withdrawn.
The government has listened to businesses and acted on their
feedback about the administrative burden these requirements
would have brought.
The requirements for the self-employed to provide start and end
dates of self-employment and for company owner-managers to
provide details of dividend income paid by their company, in their Income Tax Self Assessment (ITSA) tax returns are going ahead
as planned.
These requirements will come into effect from 6 April 2025 and
relevant guidance will be published with the 2025/26 ITSA return. |
