Weekly tax brief | 24 January 2023

Public sector pay rises – how much do they really cost when you factor in additional tax receipts?
Matthew Todd
As more public sector workers prepare to strike, an NHS pay review report highlights that ‘some fraction’ of an NHS staff pay increase would come back to HM Treasury via increased tax and National Insurance contributions. We take a closer look at the numbers to determine the real cost to the government of providing additional NHS funding for pay rises.

The UK’s most pointless tax relief?
Chris Etherington
Information obtained by RSM UK from HMRC following a Freedom of Information request shows that a potentially valuable capital gains tax relief is estimated to have been claimed by a tiny fraction of taxpayers. We consider whether investors’ relief is the UK’s most pointless tax relief.

Engaging with HMRC early pays if you can’t settle your tax bill on time
Matt Taylor
With the self assessment and associated tax payment deadline nearly upon us, some taxpayers may be worrying about how they will settle their tax liabilities and avoid costly late payment penalties in due course. We outline how it can pay for those struggling to engage with HMRC on how to settle their liabilities.

As childcare costs escalate, could resurrecting the old system of childcare vouchers support the UK’s attempts to narrow the gender pay gap?
Charlie Barnes
The government faces a challenge in encouraging some individuals back into work but with families still struggling financially, could the rising cost of childcare represent a barrier? There has been poor take up of the government’s new childcare scheme and now may be the right time to review it.

Tax receipts are increasing at the highest rate in over ten years
Jackie Hall
HMRC statistics released today show a large rise in tax receipts – with some unwelcome surprises behind the headline figures.

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