Parliament has agreed that the Winter Fuel Allowance payable 2024 will be limited to pensioners in receipt of Pensions Credits and certain other means-tested benefits.

Pensioners who are eligible to claim Pensions Credits and have not done so need to be entitled to Pension Credits for at least one day in the week September 16th to 22nd.

Pensioners are being urged to apply for Pension Credits, a benefit that could be worth on average �3,900 per year as well as providing access to the Winter Fuel payments.

Applications for Pension Credit can be made:  

On the How to Claim page  Over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm)  By printing out and filling in a paper application form  For more information visit the Pension Credit GOV.UK page. 

Recent estimates confirm that 880,000 pensioners who are eligible to make a claim have not yet done so.

The simplest way to apply is to call the claims line 0800 99 1234.

Families, friends and neighbours are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply. 21 December is the last possible date to make a successful backdated claim in order to receive the Winter Fuel Payment.

Eligibility

You can get a Winter Fuel Payment for Winter 2024-25 if you were born before 23 September 1958.

You must also live in England or Wales and get one of the following:

Pension CreditUniversal Creditincome-related Employment and Support Allowance (ESA)income-based Jobseeker’s Allowance (JSA)Income SupportChild Tax CreditWorking Tax Credit

In some circumstances, you might be eligible if you live abroad.

You will not be eligible if you

live in Scotland;have been in hospital getting free treatment for more than a year;were in prison for the whole of the week of 16 to 22 September 2024; orwere living in a care home for the whole time from 24 June to 22 September 2024.

As the October 2024 Budget approaches, several key tax measures are anticipated based on Labour’s manifesto and previous policy announcements. Here’s what we might expect:

Capital Gains Tax (CGT): It is likely that the CGT rates may be increased, potentially aligning with income tax rates, which could push them up to 45% for property and other assets like shares. This would significantly impact investors including owners of let property and second homes.Inheritance Tax (IHT): Changes to IHT could include reducing exemptions for agricultural and business property, and there is speculation about the introduction of a “double death tax” where both IHT and CGT might be applied to inherited assets.Private School VAT: As announced, from January 2025, Labour is to impose VAT on private school fees, which will increase private education costs by 20%. Additionally, charitable business rates relief for private schools is expected to be removed starting in April 2025. Non-Domiciled Status: The non-domicile tax regime will be abolished by April 2025, affecting those who previously used this status to reduce their tax liabilities. A new residence-based regime will replace it. State Pension and Triple Lock: Labour has committed to maintaining the triple lock, ensuring pensions rise with inflation, earnings, or 2.5%, whichever is higher. However, there is concern that frozen tax bands could mean more pensioners paying income tax as their state pensions increase. Energy Profits Levy: The Energy Profits Levy on oil and gas companies is set to increase from 35% to 38%, continuing efforts to generate revenue from high-profit sectors.

In the October 2024 Budget, public expenditure cuts are expected alongside tax increases, as the government seeks to manage the fiscal deficit. Here are some anticipated areas for public spending reductions:

 Welfare and Social Benefits: While the state pension triple lock is set to remain, other welfare spending could face reductions. Means-tested benefits, such as Universal Credit and support for lower-income households, might experience tighter eligibility requirements or reductions in spending. And the Chancellor has announced that the Winter Fuel Allowances will be restricted to pensioners who receive pension credits. Local Government Funding: Local authorities might see reduced funding, potentially leading to cuts in public services such as libraries, waste management, and social care programs. These cuts could prompt councils to raise local taxes or fees to make up for the shortfall.Education: Although Labour is focusing on improving state education by introducing VAT on private school fees, broader cuts to education funding could still be possible. Non-essential programs and administrative overheads may be targeted to reduce costs.Health and Social Care: While the NHS is a political priority, there could be attempts to make the healthcare system more efficient by reducing administrative costs. However, direct cuts to healthcare services are unlikely given the political sensitivity surrounding the NHS.Defence and Policing: Defence spending may be constrained or redirected to focus on specific areas, such as cybersecurity, while traditional sectors like infrastructure investment could face reductions. Similarly, police forces may experience budget cuts, impacting non-frontline services.

At present, the Labour Party’s fixation with plugging the apparent �22bn ‘black hole’ in government finances will likely preclude any uplifting announcements in the coming budget.

To comply with the new digital platform regulations effective from 1 January 2024, platform operators must register with HMRC. Here are the key details regarding registration and reporting:

Who Needs to Register: Any platform operator facilitating the sale of goods, services, accommodation, or transportation within the scope of the new regulations must register with HMRC if they are subject to UK laws. This includes platforms that are UK tax residents, incorporated in the UK, or have their place of management in the UK .
Registration Process:

Platform operators must notify HMRC that they are subject to the reporting obligations by 31 January 2025 for the 2024 calendar year.
HMRC will provide an online reporting service, and platform operators must register to use this service before submitting reports. This registration will enable them to upload seller information in a digital format (usually XML files).

Due Diligence and Data Collection: After registration, operators are responsible for collecting and verifying information about sellers (such as name, address, and tax identification number) and transaction data for reporting. Sellers must also receive a copy of the data submitted to HMRC .
Penalties for Non-Registration: Failure to register or comply with these obligations may result in penalties. Initial fines can reach £5,000 and continuing daily fines of up to £600 may apply if operators do not fulfil their reporting duties .

Platform operators should begin preparations to ensure timely registration with HMRC and compliance with the new data reporting requirements to avoid penalties.

1 September 2024 – Due date for corporation tax due for the year ended 30 November 2022.

19 September 2024 – PAYE and NIC deductions due for month ended 5 September 2024. (If you pay your tax electronically the due date is 22 September 2024)

19 September 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2024.

19 September 2024 – CIS tax deducted for the month ended 5 September 2024 is payable by today.

1 October 2024 – Due date for Corporation Tax due for the year ended 31 December 2023.

19 October 2024 – PAYE and NIC deductions due for month ended 5 October 2024. (If you pay your tax electronically the due date is 22 October 2024.)

19 October 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2024.

19 October 2024 – CIS tax deducted for the month ended 5 October 2024 is payable by today.

31 October 2024 – Latest date you can file a paper version of your 2023-24 self-assessment tax return.

HMRC’s Personal Tax Accounts (PTAs) serve as an online tool that enables taxpayers to view and update their information in real time. The PTA can be used for many routine requests and services and help you bypass the need to call or write to HMRC.

Every individual in the UK that pays tax has a PTA, but taxpayers must sign up in order to access and use the service. This can be achieved by using the Government Gateway. You may need to verify your identify when using the service.

The following services are currently available on your PTA:

check your Income Tax estimate and tax code
fill in, send and view a personal tax return
claim a tax refund
check your Child Benefit
check your income from work in the previous 5 years
check how much Income Tax you paid in the previous 5 years
check and manage your tax credits
check your State Pension
check if you’ll benefit from paying voluntary National Insurance contributions and if you can pay online
track tax forms that you’ve submitted online
check or update your Marriage Allowance
tell HMRC about a change of name or address
check or update benefits you get from work, for example company car details and medical insurance
find your National Insurance number
find your Unique Taxpayer Reference (UTR) number
check your Simple Assessment tax bill

The PTA is a key component of HMRC’s broader strategy to transition to a fully digital tax service.

Changes to the High Income Child Benefit Charge (HICBC) came into effect on 6 April 2024. The income threshold at which HICBC starts to be charged increased to £60,000 (from £50,000).

The charge is calculated at 1% of the full Child Benefit award for every £200 (2023-24: £100) of income between £60,000 and £80,000. (2023-24: between £50,000 and £60,000). For taxpayers with income above £80,000 (2023-24: £60,000) the amount of the charge is the same as the amount of Child Benefit received. The HICBC therefore either reduces or removes the financial benefit of receiving Child Benefit.

For new Child Benefit claims made after 6 April 2024, any backdated payment will be treated for HICBC purposes as if the entitlement fell in the 2024-25 tax year if backdating would otherwise create a HICBC liability in the 2023-24 tax year.

Even if HICBC applies to you or your partner, it’s generally still beneficial to claim Child Benefit as doing so can safeguard certain benefits and ensure your child receives a National Insurance number. Claims can be made by using the HMRC app or online resources. New claims are automatically backdated for up to 3 months or to the child’s birth date if later.

Taxpayers can choose to continue receiving Child Benefit – and pay the tax charge – or opt to stop receiving benefits and avoid the charge.

Employees who are working from home may be eligible to claim a tax deduction on certain work-related bills. If their employer does not cover these expenses or allowances, they can claim tax relief directly from HMRC.

You can claim tax relief if you are required to work from home, such as if your job requires you to live far from your office or if your employer does not have an office. However, tax relief is typically not available if you choose to work from home, even if your employment contract allows it or if your office is occasionally full.

Employees can claim tax relief of £6 per week (or £26 per month for those paid monthly) to cover additional costs of working from home without needing to keep specific records. The amount of tax relief you receive depends on your highest tax rate. For instance, if you pay the 20% basic rate of tax, you will receive £1.20 per week in tax relief (20% of £6). Alternatively, you can claim the exact amount of additional costs incurred, but you must provide evidence to HMRC. HMRC accepts backdated claims for up to four previous tax years.

You may also be eligible to claim tax relief for using your own vehicle, whether it’s a car, van, motorcycle, or bike. Generally, there is no tax relief for regular commuting to and from your usual workplace. However, the rules differ for temporary workplaces, where such expenses are typically allowable, or if you use your own vehicle for other business-related mileage. Additionally, you may be able to claim tax relief on equipment purchased for work, such as a laptop, chair, or mobile phone.

If you are an employee who is working from home, you may be able to claim tax relief for some of your bills that are related to your work. If your expenses or allowances are not paid by your employer, then you can claim tax relief directly from HMRC.

Pension Credits can provide extra income to those over State Pension age and on a low income. The credits were first introduced back in 2003 to help keep retired people out of poverty.

The Department for Work and Pensions has launched a Pension Credit awareness drive, urging pensioners to check their eligibility for Pension Credit in order to secure this year’s Winter Fuel Payment. This follows the Chancellor’s recent announcement that the Winter Fuel Payment will be means tested in future.

Approximately 1.3 million households in England and Wales are expected to continue receiving Winter Fuel Payments. The government is eager to increase the uptake of Pension Credit to ensure that low-income pensioners who qualify for these payments continue to receive the Winter Fuel Payment. Pensioners must apply by 21 December 2024 in order to make a backdated claim for Pension Credit and be eligible for the Winter Fuel Payment.

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Not all benefits are counted as income.

Claimants entitled to the Pension Credit could be entitled to a support package worth an average of £3,900 per year. Details of how to make an application for Pension Credit can be found on GOV.UK at https://www.gov.uk/pension-credit/how-to-claim

The Chancellor of the Exchequer, Rachel Reeves commented that:

“The dire state of the public finances we inherited from the previous government means we’ve had to make some very difficult decisions.

Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.

We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for the Pension Credit.”

The American presidential election may have significant effects on the United Kingdom, impacting various aspects of the relationship between the two countries. Here are some key areas where the UK might feel the influence:

1. Trade Relations

• Post-Brexit Trade Deals: The UK's ability to negotiate a favourable trade deal with the US is closely tied to who is in the White House. A US president more inclined towards free trade and close UK relations would likely expedite a comprehensive trade agreement, while a more protectionist leader could complicate these negotiations.
• Regulatory Alignment: Changes in US economic policy, such as shifts in regulations or standards, might influence how the UK aligns its own policies post-Brexit, particularly in sectors like finance, pharmaceuticals, and agriculture.

2. Economic Impact

• Market Volatility: US elections often lead to fluctuations in global financial markets. The UK's economy, deeply interconnected with global markets, could experience volatility, impacting everything from the value of the pound to erratic stock market fluctuations.
• Investment Flows: US policy shifts, particularly regarding corporate taxes or international trade, could alter the flow of investments between the two nations. For instance, a US focus on domestic production might reduce American investments in the UK.

3. Foreign Policy and Defence

• NATO and Defence Spending: The US president's stance on NATO and international defence commitments could influence the UK's own defence policies and spending. A US leader pushing for higher NATO contributions might pressure the UK to increase its defence budget.
• Global Diplomacy: The UK often aligns its foreign policy with the US, particularly on issues like the Middle East, climate change, and relations with China and Russia. Changes in US diplomatic priorities could prompt the UK to adjust its own strategies.

4. Climate Change Policy

• Environmental Agreements: The US’s approach to global climate agreements, such as the Paris Agreement, can affect the UK's climate policy. A US administration committed to environmental action might encourage the UK to strengthen its own climate goals, while a less committed US might lead to a more cautious approach.

5. Cultural and Social Influence

• Public Opinion and Cultural Ties: The American president often shapes global cultural and social trends. The UK's media and public opinion can be influenced by the tone and policies of the US administration, particularly on issues like immigration, race relations, and social justice.

6. Security and Intelligence Cooperation

• Intelligence Sharing: The UK's security depends significantly on intelligence cooperation with the US. Changes in the US administration might affect the level of cooperation or the focus of shared intelligence, particularly regarding terrorism, cyber threats, and international crime.

In summary, the outcome of the US presidential election will likely have profound effects on the UK, influencing its economy, trade policies, foreign relations, and more. The exact nature of these effects will depend on the policies and priorities of the elected US president.

Interest rates are a powerful lever in our economy. Increase rates and economic activity tends to slow down, and vice versa if interest rates fall.

The recent hikes in rates, to control inflation, were reversed recently when the Bank of England (BoE) reduced rates to 5% (from 5.25%). The following notes are a summary of recent BoE commentary on this topic.

The Bank of England has recently hinted at the possibility of further reductions in interest rates, following a recent decision to lower the Bank Rate to 5% in August 2024. The decision was influenced by a variety of economic factors, including lower-than-expected inflation, which has stabilized around the 2% target, after reaching over 11% in late 2022. The Bank's Monetary Policy Committee (MPC) continues to monitor inflationary pressures closely, particularly those arising from global economic conditions, energy prices, and domestic wage growth.

The MPC's latest projections suggest that while inflation may slightly increase towards the end of 2024, it is expected to stabilize or even decrease afterward. This has led some market participants to anticipate further rate cuts, with expectations that the Bank Rate could be reduced by an additional 50 basis points by the end of the year.

50 basis points is equivalent to half a percent (0.5%). In financial terms, a basis point is one-hundredth of a percentage point (0.01%), so 100 basis points equal 1 percent. Therefore, 50 basis points equal 0.5 percent.

The decision to lower rates further will depend on a range of factors, including the persistence of inflationary pressures and the overall economic outlook. The Bank remains cautious, aiming to balance the need to control inflation with supporting economic growth and employment.

For more detailed insights, you can visit the Bank of England's official site.

Summary

If inflation stays at the current level, circa 2%, it is hoped that the downward movement in interest rates will continue. This will have obvious benefits for mortgage borrowers and business owners with high levels of borrowings.