HMRC will close its self assessment helpline for six months every year and urge taxpayers to use its online services instead.

The tax authority is also making changes to its VAT and PAYE helplines. It says the changes follow a successful trial and are now being rolled out permanently.

The self assessment helpline will now be closed from April to September every year, during these months taxpayers will be directed to online services. The self assessment helpline will open between October and March to deal with priority queries.

The VAT helpline will be open for five days every month ahead of the deadline for filing VAT returns. Outside of these days, taxpayers will be directed to use HMRC's online services.

In addition, the PAYE helpline will no longer take calls from customers relating to refunds.

Angela MacDonald, HMRC's Second Permanent Secretary and Deputy Chief Executive, said: 'Online services have transformed our lives and often provide a better service for managing tax – they're quicker, easier and always available.

'Changing our services to encourage customers to self-serve online wherever possible will allow our helpline advisers to focus support where it is most needed - helping those with complex tax queries and those who are vulnerable and need extra support.

'We must maximise every pound of taxpayers' money. Embracing online self-service allows us to help more customers and improve our customer service levels without spending additional public money.'

Data published by the Insolvency Service has revealed that the number of company insolvencies in England and Wales rose by 17% in February 2024 when compared to the same month last year.

The number of registered company insolvencies was 2,102 in February, the data showed, compared to 1,801 in February 2023. According to the Insolvency Service, the latest figure is higher than levels seen whilst government Covid-19 business support measures were in place.

The data revealed that the insolvencies consisted of 217 compulsory liquidations, 1,707 creditors' voluntary liquidations, 166 administrations and 12 company voluntary arrangements.

In regard to individual insolvencies, 10,136 were recorded in February 2024, which was 23% higher than in the same month the previous year. The individual insolvencies consisted of 709 bankruptcies, 3,007 debt relief orders (DROs) and 6,420 individual voluntary arrangements (IVAs). 

The Institute of Chartered Accountants in England and Wales (ICAEW) has stated that new guidance from HMRC on research and development (R&D) tax relief guidance 'could be clearer'.

HMRC's draft guidance covers the restriction applying for contractor payments and payments for externally provided workers (EPWs) where the R&D activity takes place overseas; and the new rules for contracted-out R&D.

The ICAEW's Tax Faculty believes that additional clarity would be 'helpful' on a few of the new points.

It also said that the guidance 'does not fully address the implications of an arrangement between the customer and the contractor that is governed by multiple contracts'. The Institute has called for the guidance to explain how to determine if the contractor took R&D into consideration at the time of the contract when multiple contract dates exist.

The ICAEW also called for clarity on the requirement that the carrying-on of R&D needs to be the primary objective of the customer in engaging the contractor if the customer is to claim the associated R&D tax relief. 

HMRC is urging working parents to make use of its Tax-Free Childcare (TFC) scheme to help save on Easter childcare costs.

It stated that working families can save up to £2,000 a year per child, or £4,000 if their child is disabled, on childcare bills under TFC.

The scheme helps parents to pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. HMRC is reminding families that they can receive up to £500 every three months – for every £8 paid into their online TFC account, they will automatically receive an additional £2 top up from the government.

TFC can be used to help pay for childminders, nurseries, breakfast and after school clubs, HMRC said.

Myrtle Lloyd, Direct General for Customer Services at HMRC, commented: 'Springtime is a good opportunity to take a fresh look at family finances. A quick check online and you can find out how TFC can help cut the cost of your childcare bills. Every bit of financial support helps – I would urge families to 'hop to it' and search 'Tax-Free Childcare' on GOV.UK to find out how you could be better off and open your account today.'

New measures aim to 'break the spell' of financial fraudsters by giving payment providers more time, according to draft legislation published by the government.

Until now, payment service providers such as banks have generally been required to process payments by the end of the following business day, giving a limited timeline to investigate and alert relevant parties to possible fraud.

The draft legislation will give payment service providers a further 72 hours to investigate payments, but only where there are reasonable grounds to suspect fraud or dishonesty. The legislation has been designed to minimise any impact on legitimate payments.

The UK has seen an increase in authorised push payment fraud over the past few years – in 2022 victims lost £485 million to these scams.

Economic Secretary to the Treasury, Bim Afolami, said: 'Fraudsters spin whole webs of lies and fabricate all sorts of things to convince people to send them money – this legislation will give banks, other payment service providers and law enforcement more time to get in touch with victims and break the fraudster's spell before money is sent.

'The government is absolutely committed to tackling fraud and recognises the impact of this devastating crime on victims – this legislation is another tool in our arsenal to fight fraud.'

The UK's economy returned to growth in January, according to the latest data from the Office for National Statistics (ONS).

The economy grew by 0.2% during the first month of 2024 following a fall in output during the previous month.

The economy was boosted by stronger sales in shops and online and more construction activity in January.

The ONS said the services sector led the bounce back after retailers struggled to draw in shoppers in December.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Today's data, showing an estimated 0.1% decline in GDP in the three months to January, is further evidence that the UK economy remains in a precarious state.

'However, estimated growth of 0.2% in January may indicate the 2023 technical recession is over.

'Businesses are clear about the factors that are holding back growth – high inflation, high interest rates, skills shortages, a lack of infrastructure investment and trade barriers with the EU.

'Last week's Budget saw some positive measures for businesses, including an increase to the VAT registration threshold. However, the statement was not a game changer and the UK stills lacks a clear industrial strategy to unlock long-term growth.'

The Chancellor's recent Spring Budget introduced a 21% rise in Landfill Tax rates, with the standard rate set to increase to £126.15 in 2025/26.

The Budget documents outlined that the standard Landfill Tax rate will rise to £126.15 per tonne and the lower rate will increase to £4.05 per tonne. The current rates are £102.10 per tonne for the standard rate and £3.25 per tonne for the lower rate.

According to HMRC statistics, Landfill Tax receipts for 2022/23 totalled £626 million, £41 million less than the previous financial year.

Commenting on the rise, Jacob Hayler, Executive Director of the Environmental Services Association (ESA), said: 'The Chancellor's announcement that Landfill Tax rates will be adjusted to reflect actual RPI will help to ensure waste material does not fall down the hierarchy and will incentivise investment in alternative circular economy infrastructure.

'Recent inflation spikes have not been accounted for in determining the rate of Landfill Tax, which has eroded the competitiveness of alternative waste treatment and recycling facilities. [The] Budget corrects this calculation and is very much welcomed by the ESA.'

The Resolution Foundation has warned that the UK is facing almost 20 years of lost pay growth.

It warned that the UK is facing a '£14,000 wage depression'. It said that, despite the Office for Budget Responsibility (OBR) reducing its forecast for inflation, real average wages are only set to regain their 2008 levels in 2026, which amounts to a staggering near-two lost decades of pay growth.

It said that, had pay continued along its pre-financial crisis path over this period, the average worker in 2023 would have been around £14,000 better off.

Commenting on the matter, Torsten Bell, Chief Executive of the Resolution Foundation, said: 'It has been a frenetic few years for tax policy making, with huge rises and cuts announced in quick succession. Middle earners have come out on top, while taxpayers earning below £26,000 or over £60,000 will lose out. The biggest group of losers are pensioners, who face an £8 billion collective hit.

'Looking at all policy changes announced this parliament reinforces the sense that the government has reversed course from the approach that dominated during the 2010s. Back then, support was focused on pensioners and takeaways on poorer, younger households. This time it is those aged over 65 and on the highest incomes who are set to lose most.'

The Institute for Fiscal Studies (IFS) has warned that the tax cuts announced in the 2024 Spring Budget will not compensate for tax rises and price increases.

It said that in 2024/25, the net effect of all national insurance contributions (NICs) and income tax changes since 2021 for an average earner will be a tax cut of about £340. Around half of employees, those earning between £26,000 and £60,000 per year, will be better off, but other employees earning enough to pay NICs or income tax will be worse off, because the cuts to NIC rates are more than offset by other tax rises.

'The big picture on tax remains much the same,' said Paul Johnson, Director of the IFS. 'This remains a parliament of record tax rises.

'Overall, for every £1 given back to workers (including the self-employed) by the NICs cuts, £1.30 will have been taken away due to threshold changes between 2021 and 2024, with this rising to £1.90 in 2027.'

Commenting on the Budget measures, Mr Johnson continued: 'While the Office for Budget Responsibility (OBR) got a little more positive in its projections, the picture on living standards also remains dismal. On average, households will be worse off at the time of the next election than they were at the last, following nugatory real earnings growth.

'The Chancellor is still on track to stabilise debt as a fraction of national income in five years' time, just about, but only on the basis of a pie-in-the-sky promise to increase fuel duties and a set of post-election spending plans that still imply substantial cuts to funding of many public services which are clearly struggling with their current level of funding.'

Chancellor Jeremy Hunt used the 2024 Spring Budget to introduce a new 'UK ISA', which will allow an additional £5,000 annual investment in UK equities to be made tax-free.

The new ISA forms part of the government's growth package and is intended to channel more investment into UK equities. The government has outlined details of the new UK ISA in its official Budget documents, and stated that its purpose will be to support savers and open up new investment opportunities for individuals.

The new UK ISA will allow individuals to invest up to £5,000 in UK businesses, including stocks and debt, and not have to pay any capital gains tax (CGT) on money made on their investment.

According to the government, the UK ISA will be a £5,000 allowance in addition to the existing ISA allowance and will be a new tax-free product for people to invest in UK-focused assets.

Commenting on the new ISA, the Chancellor said: 'Following calls from more than 200 representatives from the city and our high growth sectors I will reform the ISA system to encourage more people to invest in UK assets.

'After a consultation on its implementation I will introduce a brand new British ISA which will allow an additional £5,000 annual investment for UK equities with all the other tax advantages of other ISAs.

'This will be on top of existing ISAs and will ensure UK savers can benefit from the most promising UK businesses as well as supporting those businesses with the capital to expand.'