Weekly tax brief | 21 February 2023

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments. Please feel free to share this update with any of your colleagues.

Income tax receipts at all-time high
Chris Etherington
The latest statistics from HMRC show that income tax receipts from self-assessment taxpayers are at an all-time high, with one of the highest increases for the same period on record. The bumper receipts show the true effect of fiscal drag on taxpayers and give the chancellor a headache ahead of the Spring Budget.

Solving the productivity puzzle
Adam Grannell
Over recent weeks, much has been made about the UK’s ‘productivity puzzle’, which is the conundrum currently facing chancellor Jeremy Hunt. The perfect storm of low unemployment and high inflation has pushed Hunt to review the best way in which he can go about encouraging the not insignificant number of over-50s who did not return to work after the pandemic, back into the workplace.

Tax and Benefit Reform in Scotland
Ross Stupart
Given the unexpected announcement from Nicola Sturgeon that she would be stepping down as first minister and leader of the SNP, the Institute of Fiscal Studies’ recent publication on tax and benefit changes in Scotland may have gone largely unnoticed.

HMRC fails to process tax paid using tax deposit certificates
Sara Bonavia and Luke Butterworth
After announcing that certificates of tax deposits unclaimed by 23 November 2023 may be forfeited, HMRC is now issuing late payment demands for taxpayers who have paid liabilities using these deposits weeks in advance of the self-assessment deadline.

HMRC bans tax repayment agency, with 11,000 refunds delayed during investigation
Sarah Saunders
HMRC’s investigation into a tax repayment agency has meant 11,000 taxpayers have had their tax refunds delayed. The agency, Tax Credits Ltd, has since been banned from acting as a repayment agency in the future for failing to comply with anti-money laundering regulations.

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