HMRC Self Assessment Registration Deadline: 5 October 2025

Do you think it is too early to think about submitting your personal tax return? 16 weeks or 117 days, sounds like plenty of time, until you think you really think about it: You don't want to be thinking about that during Christmas time and doing this in January can lead to added stress and higher accountancy fees for a faster turnaround and then less time to prepare for the tax payment. ⏱️ The deadline for submitting your personal tax return is 31 January. 🌈 The other option? We always recommend getting this done well in advance of the deadline, giving you peace of mind and having plenty of time to plan for any tax payments. Between April and July is best, but no one really wants to be doing tax returns in December or January. 🎄 Be aware that HMRC will automatically issue penalties for late filing and payments.

𝐌𝐢𝐬𝐬𝐞𝐝 𝐭𝐡𝐞 𝐈𝐓𝐑 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞? 𝐇𝐞𝐫𝐞'𝐬 𝐚 𝐂𝐫𝐮𝐜𝐢𝐚𝐥 𝐔𝐩𝐝𝐚𝐭𝐞 𝐨𝐧 𝐘𝐨𝐮𝐫 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐑𝐞𝐟𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 (𝐀𝐘 2025-26) The original due date for filing your Income Tax Return (ITR) for AY 2025-26 (FY 2024-25) has passed, and many taxpayers are now preparing to file a belated return (with a penalty) by December 31st. 𝐀 𝐟𝐫𝐞𝐪𝐮𝐞𝐧𝐭 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐚𝐫𝐢𝐬𝐞𝐬: If I file my ITR late, will I still receive interest on my due tax refund? The short answer is YES, but with a significant catch that every taxpayer and professional needs to note: 𝐓𝐡𝐞 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐢𝐧 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧 (𝐒𝐞𝐜𝐭𝐢𝐨𝐧 244𝐀) While the Income Tax Department compensates taxpayers for delays under Section 244A at a rate of 0.5% per month, the starting date for this calculation changes dramatically if you file late: 𝐓𝐢𝐦𝐞𝐥𝐲 𝐅𝐢𝐥𝐞𝐝 𝐈𝐓𝐑: The interest on the refund is calculated starting from April 1st of the financial year up to the date the refund is paid. (This maximizes your interest period). 𝐁𝐞𝐥𝐚𝐭𝐞𝐝 𝐈𝐓𝐑 𝐅𝐢𝐥𝐢𝐧𝐠: The interest calculation period starts only from the date you actually file the belated return up to the date of refund payment. This means a late filing, while securing the principal refund, causes you to forfeit several months of accrued interest (from April 1st to your filing date). 𝐓𝐡𝐞 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲: The law ensures you are not disadvantaged by procedural delays, but it strongly incentivizes timely compliance. Filing on time is the only way to ensure you receive the maximum eligible interest on your refund amount. 𝐈𝐭’𝐬 𝐚 𝐩𝐨𝐰𝐞𝐫𝐟𝐮𝐥 𝐫𝐞𝐦𝐢𝐧𝐝𝐞𝐫: Timely ITR filing isn't just about avoiding penalties; it's about optimizing your returns!

🚨 HMRC Time Limits: 🥸 HMRC has aligned time limits for issuing tax assessments across various taxes including Income Tax, CGT, Corporation Tax, VAT, IHT, SDLT and more. 🥸 The time limits for HMRC issuing tax assessments for unpaid tax depend on taxpayer behaviour and whether offshore matters are involved: ✅ Last 4 years of tax period ends – The normal time limit where reasonable care has been taken. ⚠️ Last 6 years of tax period ends – Where tax has been lost due to careless behaviour. 🌍 Last 12 years of tax period ends – For offshore matters or transfers (even if reasonable care was taken). 🚨 Last 20 years of tax period ends – Where tax has been lost due to deliberate behaviour, failure to notify, or certain avoidance schemes. 🚨 Key takeaways: 🥸 The definition of “reasonable care”, “careless” and “deliberate” are crucial in determining how far HMRC can go back – and HMRC’s interpretation can be challenged. 🥸 Discovery assessments are HMRC’s main tool to issue tax assessments, and the clock starts ticking for HMRC from the end of the relevant tax period.

💡 Common Tax Misconceptions — Debunked (Under HMRC Rules & Regulations) Tax season can often bring confusion, and misinformation spreads fast. Let’s clear up a few common tax myths — straight from the principles of HMRC guidance 👇 1️⃣ “If I earn under the Personal Allowance, I don’t need to file a return.” ❌ Not always true. Even if your income is below the threshold, you may still need to file a Self Assessment — for example, if you’re self-employed, a company director, or have other untaxed income. 2️⃣ “Gifts are always tax-free.” ❌ Not quite. While small gifts are often exempt, HMRC has strict rules about inheritance tax, annual exemptions, and potential 7-year rules for larger gifts. 3️⃣ “Claiming expenses means I can deduct everything I buy for work.” ❌ Only if it’s “wholly, exclusively and necessarily” for business use. Mixed-use or personal expenses can’t be claimed. HMRC can and does review such claims. 4️⃣ “If HMRC hasn’t contacted me, everything must be fine.” ❌ HMRC operates on a system of self-assessment. The responsibility to ensure your records and returns are correct lies with you — not HMRC. 5️⃣ “Tax rules don’t change often.” ❌ HMRC updates thresholds, allowances, and compliance requirements frequently. Staying informed (or consulting a professional) is crucial. 👉 Bottom line: A little misunderstanding can lead to big issues later. Always check HMRC’s latest guidance or seek professional advice before making assumptions about your tax situation. #TaxTips #HMRC #UKTax #Finance #Accounting #TaxAdvice #Compliance #SmallBusinessUK #SelfAssessment #TaxPlanning

𝐌𝐚𝐧𝐲 𝐩𝐞𝐨𝐩𝐥𝐞 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐢𝐟 𝐧𝐨 𝐧𝐨𝐭𝐢𝐜𝐞 𝐜𝐨𝐦𝐞𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐚 𝐲𝐞𝐚𝐫 𝐨𝐫 𝐭𝐰𝐨 𝐨𝐟 𝐟𝐢𝐥𝐢𝐧𝐠 𝐭𝐡𝐞𝐢𝐫 𝐫𝐞𝐭𝐮𝐫𝐧, 𝐭𝐡𝐞𝐲’𝐫𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐥𝐞𝐚𝐫. 𝐁𝐮𝐭 𝐭𝐡𝐚𝐭’𝐬 𝐧𝐨𝐭 𝐞𝐧𝐭𝐢𝐫𝐞𝐥𝐲 𝐭𝐫𝐮𝐞. Even after your return is processed and no scrutiny is initiated, the Income Tax Department can 𝐫𝐞𝐨𝐩𝐞𝐧 𝐲𝐨𝐮𝐫 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 if it has reason to believe that 𝐢𝐧𝐜𝐨𝐦𝐞 𝐡𝐚𝐬 𝐞𝐬𝐜𝐚𝐩𝐞𝐝 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭. This is done through Section 148 — one of the most powerful reassessment provisions of the Income Tax Act. Let’s understand what Sections 148 and 148A mean and the timelines involved. 🔹 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖𝐀 — 𝐓𝐡𝐞 𝐏𝐫𝐞-𝐍𝐨𝐭𝐢𝐜𝐞 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 (𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐟𝐫𝐨𝐦 𝟎𝟏.𝟎𝟒.𝟐𝟎𝟐𝟏) Before any notice u/s 148 can be issued, the Assessing Officer (AO) must: 1️⃣ Conduct an enquiry, if required, with prior approval. 2️⃣ Issue a 𝐬𝐡𝐨𝐰-𝐜𝐚𝐮𝐬𝐞 𝐧𝐨𝐭𝐢𝐜𝐞 explaining why reassessment may be needed. 3️⃣ Allow the taxpayer an 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐫𝐞𝐩𝐥𝐲 (𝐮𝐬𝐮𝐚𝐥𝐥𝐲 𝟕–𝟏𝟓 𝐝𝐚𝐲𝐬). 4️⃣ Pass a reasoned order with approval, deciding whether to issue the notice. This ensures that reassessment is not initiated mechanically — the 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫 𝐠𝐞𝐭𝐬 𝐚 𝐟𝐚𝐢𝐫 𝐜𝐡𝐚𝐧𝐜𝐞 𝐭𝐨 𝐫𝐞𝐬𝐩𝐨𝐧𝐝 before action is taken. 🔹 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖 — 𝐓𝐡𝐞 𝐑𝐞-𝐎𝐩𝐞𝐧𝐢𝐧𝐠 𝐨𝐟 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 Once the process under Section 148A is completed and approval is obtained, the 𝐀𝐎 𝐜𝐚𝐧 𝐢𝐬𝐬𝐮𝐞 𝐚 𝐧𝐨𝐭𝐢𝐜𝐞 𝐮/𝐬 𝟏𝟒𝟖 𝐫𝐞𝐪𝐮𝐢𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫 𝐭𝐨 𝐟𝐢𝐥𝐞 𝐚 𝐫𝐞𝐭𝐮𝐫𝐧 𝐨𝐟 𝐢𝐧𝐜𝐨𝐦𝐞 𝐚𝐠𝐚𝐢𝐧 for that year. After the return is filed, the AO proceeds to reassess the income under Section 147 — 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐰𝐡𝐞𝐫𝐞 𝐭𝐡𝐞 𝐚𝐜𝐭𝐮𝐚𝐥 𝐫𝐞𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐛𝐞𝐠𝐢𝐧𝐬. 𝐈𝐧 𝐬𝐡𝐨𝐫𝐭, 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖𝐀 𝐠𝐢𝐯𝐞𝐬 𝐲𝐨𝐮 𝐭𝐡𝐞 𝐜𝐡𝐚𝐧𝐜𝐞 𝐭𝐨 𝐞𝐱𝐩𝐥𝐚𝐢𝐧, 𝐰𝐡𝐢𝐥𝐞 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟖 𝐢𝐧𝐢𝐭𝐢𝐚𝐭𝐞𝐬 𝐭𝐡𝐞 𝐫𝐞𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐢𝐟 𝐭𝐡𝐞 𝐀𝐎 𝐢𝐬 𝐧𝐨𝐭 𝐬𝐚𝐭𝐢𝐬𝐟𝐢𝐞𝐝. 🔹 𝐓𝐢𝐦𝐞 𝐋𝐢𝐦𝐢𝐭𝐬 (𝐚𝐬 𝐩𝐞𝐫 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟒𝟗) A notice under Section 148 can be issued up to 𝟑 𝐲𝐞𝐚𝐫𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐞𝐧𝐝 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐚𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭 𝐲𝐞𝐚𝐫 in normal cases. However, where the income escaping assessment 𝐞𝐱𝐜𝐞𝐞𝐝𝐬 ₹𝟓𝟎 𝐥𝐚𝐤𝐡, the time limit extends up to 𝟓 𝐲𝐞𝐚𝐫𝐬. Beyond this, reassessment cannot be initiated except in very limited cases. 🔹 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲 A notice under Section 148A(b) is not yet reassessment — it’s your opportunity to explain before the case is reopened. A timely and well-prepared response here can often prevent the matter from escalating further.

🔍 Are you ready for the next step in tax compliance? From April 2026, individuals who are self-employed or landlords with gross income of £50,000 or more will need to join Making Tax Digital for Income Tax (MTD IT). But did you know that not every individual falls into the requirement? Some income exemptions — and even digital exclusion criteria — may apply. Our latest article breaks down: • Which types of income qualify for exemptions • When the £50k threshold applies • What to do if you believe you meet a “digital exclusion” 👉 Read on to make sure you are fully prepared — and not caught off-guard. https://lnkd.in/eWBnNjwe #MakingTaxDigital #MTDIT #tax #accounting #landlords #selfemployed

💡 What I Learned Today: Section 115BAA of the Income Tax Act, 1961 Today, while filing the ITR of a company (whose previous year’s ITR was filed by another CA), I noticed that the company had a profit but was not liable to pay tax due to brought-forward losses. Initially, I thought that if no tax is payable as per taxable profit, the company should still be liable under MAT. However, on further review, I realised that the company had filed Form 10-IC, thereby opting for Section 115BAA of the Income Tax Act, 1961. 📘 So, what is Section 115BAA? From AY 2020-21 onwards, any domestic company can opt for taxation under this section. It allows companies to pay tax at a concessional rate of 22% (plus 10% surcharge and 4% cess), leading to an effective rate of 25.17%, irrespective of income level. However, this lower rate comes with certain conditions: 1️⃣ It is applicable only to domestic companies. 2️⃣ Once opted, it cannot be withdrawn or reversed. 3️⃣ MAT and MAT credit are no longer applicable. 4️⃣ The company must forgo specific deductions, and any brought-forward losses related to those deductions (like additional depreciation) cannot be set off. While additional depreciation and its unabsorbed portion are disallowed, normal depreciation and unabsorbed normal depreciation can still be set off. 5️⃣ There is no turnover limit and no requirement to be a new company — even existing companies can migrate to this regime at any time. 💬 This experience helped me understand not just the tax rate benefit, but also the practical impact of opting for Section 115BAA on brought-forward losses and MAT credit. Let’s learn together 😊

Before you file your tax returns, pause and read this 🚩 Last year, a client called me sounding panicked. She had just filed her company’s tax returns and got flagged for audit two weeks later. When we reviewed her file, the issue wasn’t complicated. It was a simple mistake that could’ve been avoided if she had done one thing 👉 checked her records properly before submission. So, let me share 5 red flags you should look out for before filing your tax returns 👇 1️⃣ Figures without backup — If you can’t trace an amount to a ledger, schedule, or computation sheet, that’s a red flag. 2️⃣ Unreconciled revenue and expenses — When your internal books and what you report to FIRS don’t align, it raises eyebrows. 3️⃣ Unclaimed WHT credits — I’ve seen businesses lose millions because they didn’t report their withholding tax receipts. 4️⃣ Late PAYE remittances — The days of “they won’t notice” are gone. The authorities are now tracking this actively. 5️⃣ Wrong assessment basis — Are you a small, medium, or large company? That little box can make a big difference in how you’re taxed. Before you hit “submit”, go through your tax file like the auditor you don’t want visiting your office. Trust me that one extra hour of review can save you weeks of stress. Would you like me to share a simple “Tax Return Review Checklist” to make this easier? Comment “Checklist” if you want it.

HMRC is writing to taxpayers who may have failed to include all of their dividend income from shares in UK companies on their income tax self assessment tax return for 2023/24. In the letter, HMRC asks the taxpayer to check that their ITSA tax return for 2023/24 includes the correct amount of dividend income. If the taxpayer finds that they have made an error on their return, they should amend the return by 31 January 2026. HMRC says that it will charge interest on any tax paid late and that it may charge a penalty where an error has been made. Where a penalty is charged, HMRC may apply a reduction depending on how helpful the taxpayer is in working with HMRC to correct the error. *Brook & Co’s advise: Although the letter focuses on UK dividends for 2023/24, taxpayers should ensure that they correct any and all errors on ITSA tax returns filed previously. HMRC’s guidance explains how to do this, including where the deadline for amending a return has passed. Common areas where errors may be made include overseas income, rental income and disposals for capital gains tax. Follow Brook & Co for more tax news and tips. 📍 Offices in Brackley and Milton Keynes. Get in touch now. 📧 info@brookandco.com 💻 www.brookandco.com

Latest HMRC stats on R&D tax relief suggest a new era of scrutiny but stronger outcomes for genuine innovators💼 Published in September 2025, the stats confirm what many in the innovation community have felt over the past year - the landscape for claiming R&D tax relief has fundamentally changed: 📉 Total claims down 26% 📉 SME claims down 31% 📝 New compliance rules and documentation requirements are changing the landscape But it’s not all bad news…the average claim value is up 33%, meaning well-prepared, evidence-rich claims are still being rewarded💰 Sam Swansborough, Business Tax Director at James Cowper Kreston, commented: “The regime is evolving to better target genuine innovation. Forward-thinking businesses are using this as an opportunity to strengthen their processes, demonstrate the real impact of their R&D, and maximise claim value.”💬 Expert advice has never mattered more and working with a specialist adviser is no longer just a “nice to have” but a key driver of success, helping you to: 💡 Navigate the new documentation and notification requirements 💡 Ensure your claim is robust, well-evidenced and compliant 💡 Respond effectively to HMRC enquiries and avoid costly mistakes Click here to read our full article and to speak to a member of our R&D Tax Relief team, who can help businesses build robust, compliant claims that unlock genuine value to help maximise your businesses’ potential👉https://lnkd.in/eK6jKZyg Read HMRC’s full report: https://lnkd.in/eUsvAGY5 #ResearchAndDevelopment #Innovation #HMRC #TaxCredits #SME #JamesCowperKreston #MaximiseYourPotential