Morgan Hemp Blog

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 Any HMRC directions issued before 6 April 2025 are no longer valid –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…

HMRC could get new powers in tax avoidance clampdown

Thursday, May 1, 2025

Tax avoidance – and specifically those who promote it – has once again been pushed into the spotlight. That’s because of a new review
launched by the Government, as trailed at the Spring Statement.

New measures are being put forward to crackdown on the promotion of tax avoidance. HMRC would get more powers and have the option to issue stronger penalties if the proposals go forward.

Officials said the plans would empower HMRC to ‘more efficiently and effectively disrupt the business model promoters rely on’.

According to…

Tax rises inevitable amid tariff trade war?

Thursday, May 1, 2025

The dust had barely settled on Rachel Reeves’ Spring Statement before shockwaves were sent through financial markets following news
of trade tariffs from America. Donald Trump’s new tariff regime – which initially included enormous tariffs on most of the world’s largest trading nations – has led to fears of a ripple
effect that could envelop the UK economy.

And some leading economists in the UK have warned that the knock on effect of this situation will inevitably force the Chancellor to raise taxes at the…

Several tax-related changes to take effect

Tuesday, April 1, 2025

A number of tax changes are set to take effect in April, with National Insurance contributions for employers and a facet of Capital Gains Tax among them.

Employer NICs will rise from 13.8%, as it stands now, to 15% from 6 April 2025. And there are changes afoot for the Secondary Threshold – the point at which employers
become liable to pay NICs on employees’ earnings. This will go down to £5,000 a year from 6 April 2025 until 6 April 2028, dropping from the…

Tax commitment finally set to change after 25 years

Tuesday, April 1, 2025

A 25-year UK tax commitment related to Income Tax is set to be axed from next month.

As the new tax year begins on 6 April 2025, rules on The Official Rate of Interest (ORI) are finally set to change. In January 2000 it was decided
to not increase the rate during the tax year, and it has remained that way ever since.

HMRC is now highlighting the change through communications with businesses as we get near to the new tax year. The ORI is used…