14 Autumn Budget | 30 October 2024 Tax administration Making tax digital (MTD) for income tax MTD for income tax will be extended to sole traders and landlords with income over £20,000. The change will be made by the end of this Parliament (2029), but the precise timing will be set out at a future fiscal event. Currently, MTD will begin from April 2026 for sole traders and landlords with income over £50,000 and April 2027 for those with income over £30,000. Late payment interest The interest rate charged by HMRC on unpaid tax liabilities will rise by 1.5 percentage points from 6 April 2025. Reporting of benefits-in-kind via payroll software The government has confirmed that the use of payroll software to report and pay tax on benefits-in-kind for income tax and NICs will become mandatory, in phases, from April 2026. Umbrella companies Recruitment agencies will be responsible for accounting for PAYE on payments made to workers supplied via umbrella companies from April 2026. Where there is no agency, this responsibility will fall to the end client business. Car ownership schemes ‘Loopholes’ will be closed in certain company car ownership arrangements. In these arrangements, an employer or a third party sells a car to an employee, often via a loan with no repayment terms and negligible interest, then buys it back after a short period, avoiding company car tax. The changes will take effect from 6 April 2026. Liquidations of limited liability partnerships (LLP) The way capital gains are taxed will be changed when an LLP is liquidated, and assets are disposed of to a contributing member or person connected to them, to close a route used to avoid tax. Changes will have effect from 30 October 2024. Close company loans to shareholders A change to the loans to participators regime from 30 October 2024 is aimed at ensuring shareholders cannot extract funds untaxed from close companies.
RkJQdWJsaXNoZXIy MjM4MA==