You may have been entitled to a Cost of Living Payments of £301 (paid April/May 2023) and should be about to receive £300 (payable early November 2023) and a further £299 due spring 2024. Payments are limited to persons claiming the following benefits.

• income-based Jobseeker’s Allowance (JSA)
• income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Universal Credit
• Child Tax Credit
• Working Tax Credit

The payments will be made separately from your benefit payments.

You will not get a payment if you are only receiving New Style ESA, contributory ESA, or New Style JSA.

If you have a joint claim on the qualifying dates, a single payment of £301, £300 and £299 will be sent using the same payment method used between these dates if you are eligible.

If you are getting both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only, which will be paid by HMRC.

If you are getting tax credits from HMRC and a low income benefit from the Department of Work and Pensions (DWP), you cannot receive a Cost of Living Payment from both HMRC and DWP. You will usually be paid by DWP.

Your payment might come later, for example if you’re awarded a qualifying benefit at a later date or you change the account your benefit or tax credits are paid into. You will still be paid the Cost of Living Payment automatically.

If you have received a Cost of Living Payment, but later it is found that you were not eligible for it, you may have to pay it back.

One of the many ways that payments can be made to HMRC is by using a direct debit. The direct debit can be set up online.

You can pay your tax bill using direct debit if you have an online account with HMRC for:

• Self-assessment
• Employers’ PAYE and National Insurance
• Construction Industry Scheme (CIS) deductions
• VAT
• Corporation Tax
• Machine Games Duty
• Soft Drinks Industry Levy

You can also make miscellaneous payments (if your payment reference begins with ‘X’) if you have an online account with HMRC for one of these taxes.

In addition, you must be the authorised signatory on the account you want to make payments from, and it must be a UK bank account.

When making a payment for Self-Assessment you should use your 11-character payment reference. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

It is also possible to pay HMRC by other methods including bank transfer, cheques, corporate credit cards, corporate debit cards and personal debit cards. The use of corporate cards is subject to a fee. Payment by personal debit cards is currently fee-free. There is also no charge for payment by direct debit, bank transfer or cheque. HMRC has not accepted personal credit cards since January 2018 when credit card surcharges on personal credit cards were banned.

Humza Yousaf, Scotland's First Minister, has announced that council tax rates will be frozen in the next financial year to support people struggling with the effects of high inflation. 

First Minister Humza Yousaf said that the:

“Announcement will bring much needed financial relief to those households who are struggling in the face of rising prices. Council tax is already lower in Scotland than elsewhere in the UK, and some 2.5 million households will now benefit from this freeze.

Of course, the public sector across the UK is facing budget pressures as a result of UK Government austerity, and we know councils are facing financial challenges themselves. That’s why the Scottish Government will be fully funding this freeze to ensure they can continue providing the services on which we all rely. This is on top of the real-terms increase to local government revenue funding this financial year.

The Scottish Government remains wholly committed to the Verity House Agreement, and as part of that are continuing work with COSLA on a new fiscal framework for local authorities. We are also working on longer term reforms to the council tax system, which are being considered by the working group on local government funding that we are chairing jointly with COSLA.”

The council tax freeze will be fully funded by the Scottish government and will mean that council tax rates in Scotland will remain the same in the 2024-25 council tax year. This means that households will not see any increase in council tax rates until April 2025 at the earliest.

The Cost of Living support package has been designed to help over 8 million households in receipt of means tested benefits. The details for Cost of Living Payments due in the 2023-24 tax year were published earlier this year and have recently been updated.

Eligible recipients will receive up to 3 Cost of Living Payments of £301, £300 and £299 during the course of the current tax-year. This includes those receiving pension credit, and these payments will be made separately from other benefit payments. The first payment of £301 was made between April-May 2023 and the second payment of £300 was paid during August-September 2023. The third payment of £299 is due to be paid in spring 2024.

An additional one-off payment of £150 or £300 will be paid to pensioners during winter 2023-24. The Winter Fuel Payment is provided by the government to help older people keep warm during winter. The amount a pensioner will receive depends on a number of factors including their age and the age of other people living with them. You can get a Winter Fuel Payment for winter 2023-24 if you were born before 25 September 1957. HMRC is in the process of writing to eligible recipients telling them how much to expect.

HMRC’s free tax app is available to download from the App Store for iOS and from the Google Play Store for Android. The latest version of the app includes updated functionality to check your Child Benefit and State Pension, set a reminder to make a Self-Assessment payment and the option to be contacted by HMRC electronically instead of by paper.

The APP can be used to see:

• your tax code and National Insurance number;
• your income and benefits;
• your income from work in the previous 5 years;
• how much you will receive in tax credits and when they will be paid;
• your Unique Taxpayer Reference (UTR) self-assessment;
• how much Self-Assessment tax you owe;
• your Child Benefit; and
• your State Pension.

The app can also be used to complete a number of tasks that usually require the user to be logged on to a computer. This includes to:

• get an estimate of the tax you need to pay;
• make a Self-Assessment payment;
• set a reminder to make a Self-Assessment payment;
• report tax credits changes and complete your renewal;
• access your Help to Save account;
• use our tax calculator to work out your take home pay after Income Tax and National Insurance deductions;
• track forms and letters you have sent to us;
• claim a refund if you have paid too much tax;
• update your postal address; and
• choose to be contacted by HMRC electronically, instead of by letter.

The Cost of Living support package has been designed to help over 8 million households in receipt of means tested benefits. The details for Cost of Living Payments due in the 2023-24 tax year were published earlier this year and have recently been updated.

Eligible recipients will receive up to 3 Cost of Living Payments of £301, £300 and £299 during the course of the current tax-year. This includes those receiving pension credit, and these payments will be made separately from other benefit payments. The first payment of £301 was made between April-May 2023 and the second payment of £300 was paid during August-September 2023. The third payment of £299 is due to be paid in spring 2024.

An additional one-off payment of £150 or £300 will be paid to pensioners during winter 2023-24. The Winter Fuel Payment is provided by the government to help older people keep warm during winter. The amount a pensioner will receive depends on a number of factors including their age and the age of other people living with them. You can get a Winter Fuel Payment for winter 2023-24 if you were born before 25 September 1957. HMRC is in the process of writing to eligible recipients telling them how much to expect.

Your eligible deposits with all High Street bank are covered by the Financial Services Compensation Scheme (FSCS).

The present limit of this FSCS guarantee is £85,000 and this applies to total deposits held at a bank, not per account with a bank.

This will be of interest to Metro Bank account holders as they witness the current difficulties and dramatic drop in share price.

On their website, Metro Bank underline the FSCS guarantee, they say:

“Your eligible deposits with Metro Bank PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please visit www.fscs.org.uk for further information.”

The FSCS do extend this guarantee to £1m in certain circumstances. The published details on the FSCS site say:

“If you hold money with a UK-authorised bank, building society or credit union that fails, we will automatically compensate you.

• up to £85,000 per eligible person, per bank, building society or credit union.
• up to £170,000 for joint accounts.

We protect certain qualifying temporary high balances up to £1 million for 6 months from when the amount was first deposited.”

If you are concerned about deposits you feel may be at risk, you can check your money is protected using the bank and savings protection checker at https://www.fscs.org.uk/check/check-your-money-is-protected/

These legal agreements enable a person to grant decision making powers about their care, treatment or financial affairs to another person if they lose mental capacity.

The Powers of Attorney Act fires the starting gun on bringing the existing paper-based process online for the first time. The changes, when introduced, will make the system quicker, easier to access and more secure for the thousands of people who make and rely on a lasting power of attorney every year.

The legislation, which was introduced by Stephen Metcalfe MP and supported by the government, will also strengthen existing fraud protection by allowing checks on the identity of those applying for a lasting power of attorney.

The new online system and the additional safeguards are now being developed by the Office of the Public Guardian. Extensive testing will need to be conducted to ensure the process is simple to use, works as intended and is secure. More information on when it will be available will be published in the coming months.

The number of registered lasting power of attorneys has increased drastically in recent years to more than 6 million but the process of making one retains many paper-based features that are over 30 years old. Every year, the Office of the Public Guardian handles more than 19 million pieces of paper as a result of their offline system.

The digitalisation will speed up registration time by picking up errors earlier and allowing them to be fixed online rather than having to wait for documents to be posted back and forth between the applicant and the Office of the Public Guardian as currently happens.

The government looks likely to accept the recommendations of the Low Pay Commission with a boost to the National Living Wage rate.

In summary:

• National Living Wage will rise to two-thirds of average earnings.
• Chancellor commits to Low Pay Commission recommendations, with latest forecasts showing a pay boost next year worth over £1,000 for 2 million low-paid workers.
• Successive rises mean a full-time worker on the National Living Wage will be over £9,000 better off than they would have been in 2010.

A formal announcement will be made November 2023, presumably as part of the Autumn Statement.

Based on the Low Pay Commission’s latest forecasts, this would see the National Living Wage increase to over £11 an hour from April 2024.   

People currently aged 23 and over are eligible for the National Living Wage, with over 2 million workers on low pay set to benefit from the increase. The announcement, after successive rises since its introduction in July 2015, means a full-time worker on the National Living Wage will be over £9,000 better off than they would have been in 2010.  

Each year, the independent Low Pay Commission produces recommendations to the Government on National Living Wage and National Minimum Wage rates. This year it is due to make recommendations for the rates that will take effect from April 2024, based on their remit which sets a target for the National Living Wage to reach two-thirds of median earnings by 2024 for workers aged 21 and over, taking economic conditions into account.

The Community Investment Tax Relief (CITR) scheme is designed to encourage investment in accredited Community Development Finance Institutions (CDFIs). The tax relief under the scheme is available to both individuals and companies.

CDFIs may take a range of forms including:

• community loan funds, which make capital available to community regeneration initiatives and businesses;
• micro-finance funds, which make small loans, usually at near-market rates of interest, to the smallest businesses, e.g., sole traders; and
• social banks – profit-seeking financial service providers or subsidiaries, dedicated to social or environmental objectives.

The scheme encourages investment in disadvantaged communities by giving tax relief to investors who back businesses (and other not-for-profit enterprises) in disadvantaged communities by providing additional tax relief. Tax relief of up to 5% per year is available for up to 5 years starting with the year in which the investment is made. This provides for a total tax relief of up to 25% of the invested amount.

It was announced as part of the Spring Budget measures that the amount CDFIs can apply to relevant investments would increase from £250,000 to £375,000 for non-profit organisations and from £100,000 to £250,000 for profit organisations. The enabling legislation came into force on 2 June 2023.

In addition, the amount accredited CDFIs can raise through CITR increased from £10 million to £25 million for retail CDFIs and from £20 million to £100 million for wholesale CDFIs.

HMRC has published their latest statistics on Child Trust Funds (CTFs) that reveal that whilst around 500,000 accounts have now matured, there remains some 430,000 funds that have matured but remain unclaimed.

If you turned 18 on or after 1 September 2020 there may be cash waiting for you in a dormant CTF. The average market value of an unclaimed CTF can be £2,000. The actual amount of money depends on a number of factors.

Children born after 31 August 2002 and before 3 January 2011 were entitled to a CTF account provided they met the necessary conditions. These funds were invested in long term saving accounts for newly born children. 

Around 7 million CTF accounts were set up since the scheme was launched in 2002, roughly 6 million by parents or guardians and a further 1 million set up by HMRC where parents or guardians did not open an account.

Around 55,000 accounts mature each month and HMRC has created a simple online tool to help young people find out where their account is held. If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.

The actual CTF accounts are not held by HMRC, but by a wide range of CTF providers who are financial services firms. Families can continue to pay into a CTF, until the maturity date. There is an annual limit of £9,000, and there is no tax to pay on the CTF savings interest or profit.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

'Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on. I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.'

The Chancellor, Jeremy Hunt, has announced that he will deliver his Autumn Statement to the House of Commons on Wednesday, 22 November 2023. This move would imply that the annual Budget will not take place until the spring of 2024.

The Autumn Statement is used to give an update on the state of the economy and will respond to the economic and fiscal forecast published by the independent Office for Budget Responsibility (OBR). The Autumn Statement also presents an opportunity for the government to publish consultations, including initiating early-stage calls for evidence and consultations on long-term tax policy issues.

The OBR has executive responsibility for producing the official UK economic and fiscal forecasts, evaluating the government’s performance against its fiscal targets, assessing the sustainability of and risks to the public finances and scrutinising government tax and welfare spending.

The Chancellor has made it clear that the main focus of the Autumn Statement will be to continue with measures to bring down inflation. We are therefore unlikely to see any major tax cuts that could further fuel inflation.

It is possible to pay HMRC by corporate credit card or corporate debit cards. The use of these cards is subject to a fee. Payment by personal debit cards is currently fee-free. There is also no charge for payment by Direct Debit, bank transfer or cheque.

HMRC has not accepted personal credit cards since January 2018 when credit card surcharges on personal credit cards were banned.

You can pay HMRC online using a suitable credit / debit card for:

• Self-Assessment
• Employers’ PAYE and National Insurance
• VAT
• Corporation Tax
• Stamp Duty Land Tax
• Income Tax (because you previously under-paid)
• Imported goods you have declared on the Customs Declaration Service
• Miscellaneous payments (if your payment reference begins with ‘X’)

When making a payment for Self-Assessment, you should use your 11-character payment reference. This is your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

HMRC will accept your online debit or credit card payment on the date you make it. This includes payments made on bank holidays and weekends.

The Department for Business and Trade published the following announcement, that if implemented, should reduce the present trend to publish fake reviews and charge hidden fees at point of sale. The overall aim is to help consumers cut the cost of living…

In a recent press release the Department said:

“Commissioned by the Prime Minister in June as part of the Government’s ongoing work to support people with the cost of living, government research published today will inform the consultation to ensure we root out where ‘drip pricing’ harms consumers most.

The research has confirmed so-called ‘drip pricing’ – where the price paid at checkout is higher than originally advertised due to extra, but necessary, fees – is widespread, and occurs in more than half of providers in the entertainment (54%) and hospitality (56%) industry, and almost three quarters across transport and communication (72%) sectors. In total, this costs UK consumers £1.6 billion online each year.”

Additional consultations that target labelling and so-called “fake reviews” are in the pipe-line that should ensure that unit pricing is consistently applied, including to promotions and special offers, helping consumers compare products easily and identify what items represent the best value.

At present, these noble initiatives are speculative. We will have to wait and see if the proposed consultations produce effective legislation.

As children return to school after the summer break, HMRC is reminding parents that they may be eligible to use the Tax-Free Childcare (TFC) scheme to help pay for any approved childcare.

The TFC scheme can help parents of children aged up to 11 years old (17 for those with certain disabilities). The TFC scheme helps support working families with their childcare costs. There are many registered childcare providers including childminders, nurseries, breakfast and after school clubs and approved play schemes signed up across the UK. Parents can pay into their account regularly and save up their TFC allowance to use during school holidays. 

The TFC scheme provides for a government top-up of parental contributions. For every £8 contributed by parents an additional £2 top up payment will be funded by Government up to a maximum total of £10,000 per child per year. This will give parents an annual savings of up to £2,000 per child (and up to £4,000 for disabled children until the age of 17) in childcare costs. 

The TFC scheme is open to all qualifying parents including the self-employed and those on a minimum wage. The scheme is also available to parents on paid sick leave as well as those on paid and unpaid statutory maternity, paternity and adoption leave. In order to be eligible to use the scheme parents will have to be in work at least 16 hours per week and earn at least the National Minimum Wage or Living Wage. If either parent earns more than £100,000, both parents are unable to use the scheme.

HMRC’s Director General for Customer Services, said:

‘Starting back to school and arranging childcare for the term ahead can be costly for working families. Tax-Free Childcare offers financial help so families can save on the cost of childcare. Search Tax-Free Childcare on GOV.UK and sign up online today.’

Recognising the need to maintain access to cash withdrawal facilities, the government is stepping in to set out a new access standard in the UK.

The vast majority of people and businesses are set to be no further than three miles away from withdrawing cash under a new framework set out by the Treasury.

A government statement recently published sets a minimum expectation on banks to protect services for people and businesses wanting to withdraw or deposit cash.

They can expect to withdraw cash without any fees – something that has been set out in law.

As part of this move, the Financial Conduct Authority (FCA) has been provided new powers by the government to protect the provision of cash access services. This includes protecting cash access without any fees for those who hold personal current accounts.

Building on laws granted through the government’s Financial Services and Markets Act 2023, the FCA will use these new powers to make sure banks and building societies are keeping up to these standards – and have the power to fine them if they do not.

While we are moving further away from using coins and notes – with the number of online payments rising from 45% to 85% in the past ten years – cash can still be an integral part of many businesses and people’s lives. This is particularly so for disadvantaged groups and old persons who may not be able to access online or card payment services.

The Bank of England’s Monetary Policy Committee (MPC) met on 2 August 2023 and voted 6-3 in favour of raising interest rates by 25 basis points to 5.25% in a move to further contain inflation. One member of the MPC voted to keep the rate at 5% whilst two others favoured an increase to 5.5%. This is the fourteenth consecutive time that the MPC has increased interest rates with rates now the highest they have been since 2008.

This means that the late payment interest rate applied to the main taxes and duties that HMRC charges interest has increased by 0.25% to 7.75%.

These changes came into effect on:

• 14 August 2023 for quarterly instalment payments; and
• 22 August 2023 for non-quarterly instalments payments.

The repayment interest rates applied to the main taxes and duties that HMRC pays interest on have increased by 0.25% to 4.25% from 22 August 2023. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.

Charities in Scotland are regulated by an independent body. This body is called the Office of the Scottish Charity Regulator (OSCR). The OSCR is the regulator and registrar for over 25,000 Scottish charities including community groups, religious charities, schools, universities, grant-giving charities and major care providers. 

The OSCR was established under the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act). The 2005 Act sets out the powers that OSCR has to regulate charities. This includes publishing and maintaining the Scottish Charity Register.

There is currently a Bill making its way through the Scottish Parliament that will update the 2005 Act.

The bill is intended to:

• give OSCR wider powers to investigate charities and charity trustees;
• amend the rules on who can be a charity trustee or a senior office-holder in a charity;
• increase the information that OSCR holds about charity trustees;
• update the information which needs to be included on the Scottish Charity Register; and
• create a record of charities that have merged.

These changes will keep Scottish legislation in line with changes that have been made in England, Wales, and Northern Ireland to improve charity legislation since the Act came into effect in 2005.

The bankruptcy process applies to people living in England, Wales or Northern Ireland. There is a separate process known as sequestration in Scotland. Bankruptcy is a form of insolvency and is normally only suitable for those people who are unable to pay back their debts in a reasonable time. Most applications for bankruptcy are made by those who are in debt, but it is also possible for a person to be made bankrupt.

You can be made bankrupt if you:

• do not pay your debts and you owe £5,000 or more;
• break the terms of an Individual Voluntary Arrangement (IVA); or
• gave information that wasn’t true to get an IVA.

This process is usually seen as a last resort for creditors as there are significant costs involved and creditors will want to be sure that they will get back the money they are owed.

Initially, creditors are required to try other legal ways to get someone to pay their debt. This is usually a statutory demand or a court judgment.

If you’re made bankrupt:

• your assets can be used to pay your debts;
• you’ll have to follow bankruptcy restrictions; and
• your name and details will be published on the Individual Insolvency Register.

Are we about to see the end of phone calls selling sham financial products?

An 8-week consultation by the Home Office and other government departments is aiming to do just this.

The consultation, published on 2 August, covers proposals to ban cold calls offering any financial products and to clamp down on fraudsters seeking to trick people into buying fake investments. Once in force, people receiving a cold call offering these types of products will know that it is a scam, and fewer people will become victims.

Fraudulent investment schemes represent a significant threat to the UK economy, consumers, and society, with victims losing £750 million during 2022-23, according to data from the City of London Police.

A specialist team which provides support to victims of fraud, known as the National Economic Crime Victim Care Unit, has also been rolled out to all 43 police forces across England and Wales since the Fraud Strategy was announced.

Part funded by the Home Office; the service has existed as part of City of London Police since 2015 and is estimated to have stopped more than £2.8 million being lost to fraud. Last year its teams supported more than 113,000 victims and its rollout to all police forces will ensure more people receive the help and support they need.

The consultation aims to lead to the banning of cold calls for financial products such as sham cryptocurrency schemes, mortgages and insurance. The process marks the next step in delivering the government’s Fraud Strategy.

A public consultation process has been launched to look at how to conduct financial risk checks for problem gambling and at what level stake limits should be set for people playing online slot games.

The move is the next step of the Government’s gambling white paper to update gambling rules for the smartphone era and protect those at risk of gambling harm including young adults.

The gambling industry, clinicians, academics, those with firsthand experience of harm, and the general public are invited to share their views.

Online slot games are deemed a higher-risk gambling product, associated with large losses, long sessions and binge play.

According to NHS England surveys, 8.5% of online slots, casino and bingo players report experiencing problem gambling, which is nearly 20 times higher than the adult population average. But unlike gaming machines in pubs, arcades and bookmakers, online slot games have no stake limits, which can make it too easy to incur potentially life-changing losses in minutes.

The Government is consulting on a maximum stake of between £2 and £15 per spin.

Public Health England research has also shown younger adults can be particularly vulnerable to gambling harms, due to a combination of common factors such as ongoing cognitive development and managing money for the first time.

The Government is also consulting on options to introduce greater protections when playing slots for 18 to 24-year-olds, such as lower stake limits of £2, £4, or requirements on operators to consider age as a risk factor for gambling-related harm.

HMRC is awarding £5.5 million to voluntary and community organisations to support customers who may need extra help with their tax affairs.

HMRC is inviting eligible organisations to bid for the funding, worth £1.8 million a year from 2024 until 2027, through HMRC’s Voluntary and Community Sector Grant Funding programme. Bids can be submitted between 24 July and 21 August 2023 with successful organisations being announced in October ready for the new funding to start from 1 April 2024.

This is the 12th round of funding HMRC is awarding as part of its commitment to help everyone get their tax right. The programme builds on more than a decade of partnership funding, worth in excess of £20 million.

Successful organisations will receive funding to provide free advice and support to customers who:

• may face barriers in understanding their tax obligations and claiming their entitlements;
• are digitally excluded from accessing HMRC services; and
• have any other difficulty in interacting directly with HMRC.

As well as providing support to customers who may need extra help, organisations will provide valuable insight to improve HMRC’s understanding of customers in vulnerable circumstances. This will allow HMRC to reduce barriers and improve the customer experience when dealing with the department.

HMRC’s Voluntary and Community Sector Grant Funding programme complements the work of HMRC’s Extra Support Team, who are on hand to help customers whose health conditions or personal circumstances make contacting HMRC difficult.

More information on eligibility and how to apply can be found online at GOV.UK.

The Bank of England’s Monetary Policy Committee (MPC) met on 21 June 2023 and voted 7-2 in favour of raising interest rates by 50 basis points to 5% to continue to tackle inflation. The 2 remaining members voted to keep the rate at 4.5%. This is the thirteenth consecutive time that the MPC has increased interest rates with rates now the highest they have been since 2008.

This means that the late payment interest rate applied to the main taxes and duties that HMRC charges interest on increases by 0.5% to 7.5%.

These changes will come into effect on:

• 3 July 2023 for quarterly instalment payments
• 11 July 2023 for non-quarterly instalments payments

The repayment interest rates applied to the main taxes and duties that HMRC pays interest on will increase by 0.5% to 4% from 30 June 2023. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.

A recent investigation by the House of Commons Committee of Public Accounts, in connection with the UK passport office, has found that hundreds of thousands of applicants faced unacceptable delays in receiving their passports.

Following the removal of COVID-19 travel restrictions, His Majesty’s Passport Office (HMPO) received a record number of passport applications. HMPO had anticipated this surge in applications, however, whilst staff processed a record number of applications, many people were let down.

The consequences of these delays included being unable to travel for family emergencies, losing money spent on holidays and having difficulties proving their identities. Another surge in demand is predicted for this year, meaning that now might be a good time to check if your passport needs to be renewed.  

It is currently taking up to 10 weeks for passports to be issued. It takes longer for postal applications to be processed than online applications. There are also premium services available at an additional cost. 

The current fees for a new passport are as follows:

HMRC has a useful online tool to help agents and taxpayers know when they can expect to receive a reply from HMRC regarding a query or request that they have made. The online tool is updated weekly.

The online tool has recently been extended to include information about employers’ PAYE and National Insurance.

The full list of taxes the tool can be used for are as follows:

• Child Benefit
• Corporation Tax
• Employers’ PAYE
• Income Tax
• National Insurance
• Self-Assessment
• Tax credits
• VAT

Agents can also check how long it will take HMRC to:

• register you as an agent to use HMRC online services;
• process an application for authority to act on behalf of a client; and
• amend your agent details.

The online tool can be accessed at the following address, and you do not have to be logged in to receive an answer: https://www.tax.service.gov.uk/guidance/Check-when-you-can-expect-a-reply-from-HMRC/start/are-you-an-agent

There does seem to be a trend to replace human interactions with automated AI systems. This is especially evident in the management of our tax system.

There was a time, many years ago, when each taxpayer’s tax affairs would be managed by a local tax inspector and all records were kept in paper format in a physically located paper-based filing system.

Now, all tax records are kept electronically. Unless your affairs are being formally investigated by HMRC – in which case a tax person may be making decisions – the only human interaction will be with a call centre operative, and it is unlikely that they will ever have seen your data prior to your call.

It is a small step from a call with a human being, to a desktop exchange with an AI system.

HMRC staff will consist of specialists who pursue tax avoiders, but even they will be prepped by AI data.

Automation is an efficient way to process huge volumes of data in double quick time. And the days of human involvement in that process are probably numbered.

Younger generations who are stepping into the world of work would be wise to consider how AI is likely to impact their chosen occupation. In the future, complexity may be the realm that quantum computers monopolise. Their inventors may need to sit back and witness the effects of their self-learning progenitors, and perhaps with some trepidation.