Paying tax arrears using HMRC payment plans
If you are unable to pay your tax bill, it’s important to reach out to HMRC as soon as possible.
HMRC may offer a Time to Pay arrangement, allowing you to settle the debt in manageable instalments based on your financial situation.
Taxpayers with liabilities of up to £30,000 can use the online
Updating your tax code
It is quite common for tax codes to be wrong, particularly if your income or employment situation has changed, so it is worth taking a few moments to check that HMRC has the correct information about you.
HMRC usually updates your tax code automatically when your income changes, using information
When you don’t need to make payments on account
If you file a Self-Assessment return you may need to pay your tax in three instalments, so it is useful to know when payments on account apply and when they can be reduced or removed.
The first two payments on account are due by 31 January during the tax year and by the 31 July after the tax year
Loss of personal allowance – the £100k ceiling
For the current tax year, taxpayers with adjusted net income between £100,000 and £125,140 will face an effective marginal tax rate of 60%, as their £12,570 tax-free personal allowance is gradually withdrawn.
If a taxpayer earns over £100,000 in any tax year, their personal allowance is gradually
The Marriage Allowance if circumstances change
Married couples and civil partners could save up to £252 a year by transferring part of one partner’s unused personal allowance to the other, but you may need to cancel the claim if your income or relationship status changes.
The Marriage Allowance applies to married couples and civil partners
What is the High Income Child Benefit Charge?
If your income exceeds £60,000 and you or your partner receive Child Benefit, you can now choose to pay the High Income Child Benefit Charge through your PAYE code instead of filing a Self-Assessment return; a simpler way to stay compliant while keeping your Child Benefit claim active.
The High
Heads up for company directors
As of April 2025, directors of close companies and self-employed taxpayers face new mandatory reporting requirements on their Self-Assessment returns.
Up to 900,000 company directors and 1.2 million taxpayers carrying on a trade will be impacted by new rules that require them to provide more
State benefits taxable and non-taxable
Many people rely on state benefits, but it is not always obvious which payments are taxable and which are tax-free.
HMRC’s guidance outlines the following list of the most common state benefits on which Income Tax is payable, subject to the usual limits:
Bereavement Allowance (previously Widow’s
Sharing income from jointly held property
The standard tax treatment for couples living together, whether married or in a civil partnership, is that income from jointly held property is split equally (50:50) between them, regardless of their actual ownership shares.
However, if the ownership is unequal and the couple wishes to have the
Tax-free income from letting a room in your home
Homeowners can earn up to £7,500 tax-free under the rent-a-room scheme, with simple reporting and flexible tax options.
This set of special rules is designed to encourage individuals to make use of spare space in their property by providing a tax exemption on rental income of up to £7,500 per tax