Other measures
Filing requirement
For 2023/24, taxpayers with incomes over £150,000 are automatically required to file a self-assessment tax return. The 2023 Autumn Statement included an announcement that those whose tax is all paid under PAYE will be removed from this requirement from 2024/25. However, as mentioned above, increases in interest rates on savings and reductions in the CGT annual exempt amount and the dividend allowance are likely to have the opposite effect – more people will have non-PAYE tax liabilities that have to be reported to HMRC.
Debt management
In the meantime, the Chancellor announced that HMRC will be given further resources to ‘improve the ability to manage tax debts’. The description – ‘to support both individual and business taxpayers out of debt faster and collect tax that is due’ – is phrased to sound positive, but the Budget documents suggest that this will raise £1 billion a year in extra tax revenue from 2025/26 to 2028/29.
Fuel duty
The Chancellor confirmed, as expected, that the 5p cut in fuel duty will be retained for the next year, and the rate will be frozen for the third year running.
National Living Wage (NLW)
From 1 April 2024, the NLW will apply to those aged 21 or over (currently 23), and will rise from £10.42 per hour to £11.44, with comparable increases to the other rates that apply to younger workers and apprentices.
Anti-avoidance rule
HMRC recently lost a case in the Supreme Court which indicated a flaw in the anti-avoidance rules known as ‘Transfer of Assets Abroad’. The Finance Bill will include provisions to prevent individuals using closely-controlled companies to bypass these rules and so avoid income tax charges in the UK. The new rules will apply to transfers abroad by closely-controlled companies from 6 April 2024.