Consumer group Which? has urged taxpayers to avoid using so-called 'refund firms' to claim tax rebates.

Which? stated that people are losing hundreds of pounds by using third-party companies to claim tax rebates rather than going directly to HMRC.

Research carried out by the group found that one in five people had been either contacted directly by a tax refund company via email, phone, letter or text message or found one online.

Two in five of those contacted by a tax refund company said they used it in order to claim a tax rebate. Such companies often charge fees anywhere between 25% to 48% of the rebate an individual receives. Extra admin fees and VAT are often added on top, according to Which?.

HMRC commented: 'We encourage customers to come to us to make their marriage allowance claim. It takes only a few minutes to complete the online application and eligible claims receive 100% of their entitlement.'

The government has launched a consultation on the framework for rolling out the 15% global minimum tax on profits which will be payable by the largest multinationals from 2023.

The tax rate will be applicable in over 130 countries and is designed to stop multinationals profit shifting to reduce their tax liability.

The rules are set to come into force from 1 April 2023 and groups will have a longer filing deadline in the first year of entering the regime. The filing deadline will be extended to 18 months from the end of the accounting period for a group's consolidated accounts.

The reform comes as part of a two-pillar package first agreed in principle by the G7 last June during talks chaired by Chancellor Rishi Sunak in London.

The rules will only apply to multinationals headquartered in the UK whose consolidated annual revenues are greater than £625 million in at least two of the previous four fiscal years. The government is consulting on whether payments should be made quarterly or annually.

The Chancellor said: 'Ensuring large multinational groups pay the right tax in the right place has been a long-standing priority for the UK.

'We reached an historic agreement last October following more than a decade of talks and negotiations.'

HMRC has warned that businesses must declare any coronavirus (COVID-19) support grants or payments on their company tax returns and stated that the grants and payments are taxable.

The deadline for filing company tax returns is 12 months after the end of the accounting period it covers.

The deadline for taxpayers or agents filing company tax returns (CT600) is 12 months after the end of the accounting period it covers. The deadline to pay corporation tax will depend on any taxable profits and when the end of the accounting period occurs.

Taxable grants include:

• test and trace or self-isolation payments in England, Scotland and Wales
• Coronavirus Statutory Sick Pay Rebate
• Coronavirus Business Support Grants (also known as local authority grants or business rate grants).

If a company received a Coronavirus Job Retention Scheme (CJRS) grant or an Eat Out to Help Out payment, they will need to do both of the following on their CT600 tax return:

• include it as income when calculating their taxable profits in line with the relevant accounting standards
• report it separately on their company tax return using the CJRS and Eat Out to Help Out boxes.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'We want to make sure companies are getting their tax returns right, first time, including any COVID-19 support payment declarations. Support and guidance is available on GOV.UK.'

The Treasury's decision to freeze income tax thresholds will drag over one million people into the higher rate tax band over the next four years, according to research commissioned by the Liberal Democrats.

Analysis by the House of Commons library shows that the government's plans to freeze income tax thresholds until 2025/26 will mean that an additional 1.25 million people will be brought into the 40% tax bracket due to the current rapid wage and price inflation.

In addition, 1.5 million people on a low wage will be brought into paying the basic level of income tax.

The report uses inflation forecasts from the Office for Budget Responsibility (OBR) to show what the thresholds would be by 2025/26 if they were not frozen. It says the higher rate threshold would increase from £50,270 to £56,270, and that the personal allowance would increase to £14,070 from £12,570.

The report concludes that household disposable incomes are expected to be 1% lower by 2026 across all regions than they would be if there was no freeze to income tax thresholds.

Research published by Nucleus Commercial Finance has revealed that over half of small and medium-sized enterprises (SMEs) in the UK are confused about the government's plans to 'level up' the country.

The research found that medium-sized businesses are most confused about the levelling up plans, with small and microbusinesses also reporting that the plans are unclear.

It also revealed that just three in ten businesses surveyed believe the government will deliver on its promise to level up the country.

'Despite the levelling up agenda being a central idea of Boris Johnson's government, SME leaders remain confused about what this is and how it will impact their business,' said Chirag Shah, CEO of Nucleus Commercial Finance.

'In addition, it's particularly concerning that they feel regional inequalities are putting financial pressures on their business and are severely impacting their opportunities to succeed.'

HMRC's Fraud Investigation Service (FIS) has now recovered more than £1 billion from proceeds of crime and tax offenders.

The FIS was launched in April 2016 and pursues the suspected proceeds of crime by using enforcement powers, both criminal and civil, to disrupt the movement of cash and assets.

It has now made over 1,200 seizures of cash and assets while on operational duty. These include gold bars worth £750,000 from a passenger at Manchester Airport and £48,000 found in a freezer drawer, hidden among chicken nuggets at a house in Blackpool.

Simon York, Director of the FIS, said: 'To reach this £1 billion milestone in five years speaks volumes to the dedication, hard work and skill of FIS to recover the proceeds of crime from those who try to cheat the system.

'Whether it's cash seizures, confiscation orders or account freezing orders, recovering these assets stops criminals bankrolling their lavish lifestyles and funding further crimes that harm our communities, such as drugs, guns and human trafficking. Crucially, this money goes back into the public purse, helping fund our vital services such as schools and hospitals.'

HMRC is waiving late filing and late payment penalties for self assessment taxpayers for one month.

The measure will give those taxpayers affected by the coronavirus (COVID-19) extra time, if they need it, to complete their 2020/21 tax return and pay any tax due.

HMRC is still encouraging taxpayers to file and pay on time if they can. The tax authority also revealed of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

• anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February; and
• anyone who cannot pay their self assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.

However, interest will be payable from 1 February.

Angela MacDonald, HMRC's Deputy Chief Executive and Second Permanent Secretary, said: 'We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19. Our decision to waive penalties for one month for self assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.'

The British Chambers of Commerce (BCC) has warned that businesses are facing 'unprecedented cost pressures', with inflation predicted to surge.

However, firms also worry that another rise in interest rates will set back the economic recovery from the pandemic. The BCC said there was already strong evidence of an economic slowdown in the final quarter of 2021 before the Bank of England (BoE) raised interest rates in December.

Then the BoE raised interest rates from 0.1% to 0.25%, but also raised their inflation forecast to 6% for 2022.

The BCC's survey showed one in four of the 5,500 firms questioned were worried about rising interest rates. Additionally, a record proportion of three in five expected their prices to increase in the next three months.

Supply chain disruption also remained a continuing theme across many sectors.

Suren Thiru, Head of Economics at the BCC, said: 'Our latest survey suggests that the UK's economic recovery slowed in the final quarter of 2021 as mounting headwinds increasingly limited the key indicators of activity.

'The persistent weakness in cash flow is troubling because it leaves businesses more exposed to the economic impact of Omicron, rising inflation and potential further restrictions.'

HMRC has revealed that 2,828 customers filed their self assessment tax return on Christmas Day, compared to 2,700 in 2020.

The most popular time on Christmas Day was between midday and 12:59pm when 227 returns were filed.

In total, more than 31,000 customers submitted their 2020/21 tax return between Christmas Eve and Boxing Day.

Christmas Eve was the busiest day of the festive period for filing with almost 20,000 returns made while Boxing Day saw a further 8,641.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'Filling in a tax return won't have been on many people's to-do lists for Christmas, but please don't leave it until the end of January either. We have videos, guidance and helpsheets to support you – just search 'self sssessment' on GOV.UK to find out more.'

The deadline for filing 2020/21 self assessment tax returns is 31 January 2021. Please contact us if you require any help completing your return before this date.