Morgan Hemp Blog

Reeves urged to launch tax raid on landlords

Monday, June 30, 2025

Labour MPs and influential advisers are urging Chancellor Rachel Reeves to ‘launch a tax raid’ on
landlords as part of efforts to fill a fiscal gap without breaking the party’s manifesto commitment against increasing taxes on ‘working people’.

There are three proposed tax measures:

– Charging National Insurance on Rental Income:
Unlike most earnings (from employment or self-employment), rental income is classified as passive and isn’t subject to National Insurance. Imposing NI on
it would align landlords’ income closer to other forms of employment earnings.

-…

Reeves under pressure to create wealth tax

Monday, June 30, 2025

The financial pressures facing Chancellor Rachel Reeves continue to mount, particularly
regarding a projected £57 billion shortfall in the country’s finances.

Public sentiment is shifting towards tax increases on wealthier individuals, with 48% in a recent poll (by BMG Research) supporting higher income
taxes on those earning over £125,000. 29% backed a rise in capital gains tax whilst 26% supported an increase in corporation tax.

Alternative tax proposals include a 2% annual levy on assets over £10 million, which it is claimed could generate £24 billion…

The Government refuses to increase the annual Personal Allowance to £20,000

Monday, June 30, 2025

Parliament debated a petition calling for the income tax threshold to be raised from £12,570 to £20,000 to allow people to keep more of their earnings. The petition, signed
by over 250,000 people, was spearheaded by pensioner Alan Frost, who described it as a “cry for help.”

MPs acknowledged concerns over increasing tax burdens on low earners and pensioners but stated that raising the threshold would cost between £40 billion to £90 billion
annually. Labour’s James Murray, Exchequer Secretary to the Treasury, rejected the proposal,…

Inheritance tax break that could lure expats back to the UK

Monday, June 30, 2025

Changes introduced by Chancellor Rachel Reeves on April 6 mean Britons who have lived abroad for 10
years are no longer subject to UK inheritance tax on their global assets.

The ‘non-dom’ tax regime (the previous system allowing UK residents to avoid tax on foreign income) has been replaced by residency-based taxation.
This means that those who have spent a decade overseas can return to the UK for up to nine years without being liable for inheritance tax on their worldwide assets.
Any UK assets…

HMRC’s ‘Help for Hustles’ Campaign

Monday, June 2, 2025

This is a recent initiative by HMRC. The campaign is designed to assist individuals
who earn extra income outside their main job, ensuring they understand their tax obligations. HMRC set up this initiative as more people have
taken on ‘side hustles’ to help them through the cost-of-living crisis but may not be aware of the tax implications.

If someone earns more than £1,000 annually from their side hustle, HMRC may classify it as ‘trading,’ meaning they might need to pay tax. This
would also mean…

Changes to notifications by employers to operate PAYE on a proportion of a globally mobile employee’s income and Overseas Workday Relief

Monday, June 2, 2025

The previous non-domicile rules regarding operating PAYE on a reduced percentage of an employee’s
income (known as Section 690) ended, replaced by a system based on tax residence. Any HMRC directions issued before 6 April 2025 are no longer valid –
employers must submit a new notification to operate PAYE on a reduced amount for the 2025-2026 tax year.

Employers can now notify HMRC of a specified proportion of income that will not be treated as PAYE income for globally mobile or non-resident employees.
Payments…

Is it time to use up this year’s cash ISA Allowance?

Monday, June 2, 2025

Rumours have swirled since before the last Autumn Statement about a possible cut to the annual
cash ISA allowance. It is now known that the Chancellor has been evaluating cutting this allowance. It is not yet known what, if anything, has been decided
but there is talk of it being reduced from £20,000 to £4,000.

A cash ISA is simply a savings account where you never pay tax on the interest earned. For as long as the cash sits in there, it stays tax-free year…

HMRC criticised for time taken to process tax refunds

Monday, June 2, 2025

HMRC is under scrutiny for taking over four months to process tax refunds, a process that previously
took just a few weeks. The delays are particularly affecting employers’ PAYE refunds and the Construction Industry Scheme (CIS). It has faced criticism from
MPs regarding long call-waiting times, increasing complexity in the tax system, and declining public trust.

Some HMRC staff working on PAYE and CIS refunds have been involved in industrial action, contributing to processing delays. Businesses and individuals are
facing significant cash flow challenges as…

Chancellor adds more fuel to ISA reform fire

Thursday, May 1, 2025

After much rumour and conjecture, it seems that some potentially significant changes to ISAs (Individual Savings Accounts) are on
the way.

We heard a lot in the build up to the Spring Statement – only to hear no words uttered by the Chancellor in relation to this. Yet, we then saw some new information come out in the Spring
Statement papers, released after the Parliamentary speech, by the Treasury.

This stated: ‘The government is looking at options for reforms to ISAs that get the balance right…

Financial reporting: major changes for business sizes take effect

Thursday, May 1, 2025

Significant changes affecting financial reporting have kicked in, meaning many businesses may be re-classified in
terms of their sizes.

The thresholds to determine whether a company is counted as ‘micro, small or medium’ changed on 6 April for the first time in 12 years. The Government announced the changed
in December 2024.

The figures on the potential impact of the changes released by the Government, indicated around 6,000 businesses would go from ‘large’ to ‘medium’ under the changes. Around
113,000 businesses and LLPs will shift from…