January 2025 News Round Up.
Tax deadline looms
The self assessment deadline of 31 January is looming, with late submissions incurring penalties and interest charges. Those needing to complete a return include the self-employed, those earning over £60,000 who also claim child benefit, anyone with untaxed income, including landlords, anyone with savings or investment income of more than £10,000 before tax, and those with total taxable income of more than £150,000. In total an estimated 12 million people will need to file a return by 31 January 2025.
New bank rules on fraud
Under new rules, banks and building societies now have to reimburse customers who have been tricked into authorising a payment to fraudsters. These increasingly sophisticated scammers persuade people they are talking to their bank, HMRC, or another legitimate organisation. The rules also cover those caught by ‘romance’ scams and paying for goods that don’t exist. The maximum refund is £85,000, although banks can refuse if they can prove the customer has shown a ‘significant degree of carelessness’.
Company car tax
The tax on most company cars will start rising from April 2025, after a three year freeze. Increases are scheduled for the following two years, and will impact all vehicles, including electric and hybrid cars, although the latter will still have a lower tax rate than more polluting vehicles. Electric cars with zero emissions are currently taxed at 2%, but this will rise 1 percentage point each year to stand at 5% by the 2027/28 tax year.
The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.
