In March we reminded you to check whether yournational insurance contribution (NIC) record contains any gaps, and how this could affect entitlement to the state retirement pension. The deadline for paying voluntary Class 3 NIC to fill any NIC deficiencies in tax years back to 2006/07 had been set at 5 April 2023.

However, to make the payment of NIC online taxpayers need to call HMRC, and their phone lines have been overloaded with the large numbers of people wanting to pay the class 3…

Many people don‘t realise that they have significant gaps in their National Insurance Contribution (NIC) record, and as a result they won‘t be entitled to the full state retirement pension. This can come as a shock when you start to receive your state pension, but by that time it may be too late to fill the gaps in your NIC record.

A taxpayer needs 35 complete NIC years (as payments or national insurance credits) in order to receive the maximum state retirement pension,…

Online platforms such as Airbnb are now obliged to provide HMRC with data about the payments it makes to individuals who let rooms on a short-term basis. HMRC is matching that data to tax returns and writing to taxpayers who have apparently not declared their rental income correctly.

If you receive such a letter don’t be alarmed by the aggressive tone, as HMRC is asserting that you owe tax, but that may not be the case.

If you…

HMRC is writing to online sellers, gig economy workers, and influencers, asking them for unpaid taxes.

There are two versions of the HMRC letter.

– This letter is directed to those who sell goods, or their own services, through an online marketplace. This will include people who sell items on eBay or Etsy, as well as taxi drivers who find their customers through apps such as Uber.

– This letter is addressed to people who have created…

The PAYE system should deduct approximately the right amount of tax from your salary so that you do not have further tax to pay on that income. However, it assumes that your income remains steady from year to year. This may not be the case.

If you have a PAYE code including the letter K, this means your personal allowance has been reduced to zero and a notional amount of income has been added to your salary to be taxed. The imposition of a K…