Welcome to the November 2023 Newsletter from Walsh & Co

The Institute for Fiscal Studies (IFS) has stated that Chancellor Jeremy Hunt finds himself in a 'fiscal bind' ahead of his Autumn Statement speech on 22 November. According to the business group, low growth and high debt interest payments will adversely affect the room the Chancellor has for manoeuvre in the Autumn Statement.

Meanwhile, HMRC has warned self assessment taxpayers that criminals are seeking to steal individuals' personal information by impersonating it in the run up to the 31 January 2024 self assessment tax return deadline.

Chancellor in a 'fiscal bind' ahead of Autumn Statement, says IFS

The IFS has warned that Chancellor Jeremy Hunt is in a 'fiscal bind' ahead of the Autumn Statement on 22 November.

In its Green Budget document, the business group said that low growth and high debt interest payments 'limit any room for manoeuvre' in the Statement.

It also warned that 'now is not the time for tax cuts', stating that high inflation combined with rising interest rates mean that cuts 'would be extremely difficult to justify'.

The IFS recommended the Chancellor avoid 'paying for' near-term tax cuts by pencilling in an extension of the freeze to the personal tax allowance or by tightening or extending the squeeze on public service spending beyond March 2025.

Commenting on the matter, Carl Emmerson, Deputy Director of the IFS, said: 'The Chancellor has . . . pencilled in some spending plans for the period from March 2025 that look very questionable. Outside key areas of government, they would imply a return to some austerity, and it's not clear to us that those spending plans really will be kept to the other side of a General Election.

'The scope for tax cuts looks really rather questionable, and Mr Hunt would do better to avoid them.'

Scams warning issued to 12 million self assessment taxpayers

Self assessment taxpayers must be on the lookout for scam texts, emails and phone calls from fraudsters, HMRC was warned.

HMRC has received more than 130,000 reports about tax scams in the past year, with 58,000 of those offering fake tax rebates.

With around 12 million people expected to submit a self assessment tax return for the 2022/23 tax year before the 31 January 2024 deadline, fraudsters will prey on taxpayers by impersonating HMRC.

The scams take different approaches. Some offer a rebate; others tell taxpayers that they need to update their tax details or threaten immediate arrest for tax evasion.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'HMRC is reminding taxpayers to be wary of approaches by fraudsters in the run up to the self assessment deadline. Criminals are great pretenders who try and dupe people by sending emails, phone calls and texts which mimic government messages to make them appear authentic.

'Unexpected contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK.'

ESSENTIAL TAX DATES FOR NOVEMBER

2 November         
Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 October 2023.

19 November         
PAYE, Student loan and CIS deductions are due for the month to 5 November 2023.

QUOTE OF THE MONTH

'Businesses need clarity on interest rates, as well as a longer-term plan for growth in the economy, focusing on infrastructure, skills and alleviating trade barriers.'

David Bharier, Head of Research at the BCC, commenting on official data that showed that the rate of inflation remained steady at 6.7% in September 2023.

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