The second cost of living support payment of £300 is currently being processed.

Most individuals receiving Department for Works & Pensions benefits will receive their payment of £300 between 31 October and 19 November. Recipients of Tax Credits should be paid between 10th and 19th of November.

Who is eligible?

Households on the following means-tested benefits will receive £900 in three instalments during 2023/24:

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

You will not receive a payment if you claim the new-style ESA, contributory ESA or new-style JSA, unless you also receive Universal Credit.

To get this autumn’s payment, you must have been entitled (or later found to be entitled) to a payment of one of the means-tested benefits listed above during the period between 18 August and 17 September 2023.

Do you need to claim?

The short answer is no. You don’t need to make a formal claim. If you receive any of the above listed means tested benefits you should automatically receive your £300.

If you believe you should have received a payment and did not, from the 20th November you will be able to report a missing payment online at https://secure.dwp.gov.uk/report-a-missing-cost-of-living-payment/welcome.

To make a non-payment report you will need your National Insurance number.

An unlikely organisation is promoting a way for its members to benefit from a claim for the Marriage Tax Allowance. For relevant couples, this can be worth £252 a year.

Charlie Bethel, Chief Officer, UK Men’s Sheds, said:

“If you have retired and your partner is still working, you may not realise that you could apply for Marriage Allowance. As a charity that brings retired men together, we are urging our members throughout the UK to invest the 30 seconds of time it takes to find out if they can claim.”

But you don’t have to be a member of UK Men’s Sheds to make a claim.

What is the Marriage Allowance?

The Marriage Allowance may save married couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. Most people have a Personal Allowance, normally £12,570 – the amount of income they do not have to pay tax on.

The Marriage Allowance lets the lower earner transfer £1,260 of their Personal Allowance to their husband, wife or civil partner.

This can reduce their partner’s tax by up to £252 annually. If eligible, couples can also backdate their claim for the previous 4 tax years and receive a lump-sum payment worth more than £1,000.

To benefit from the tax relief, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland).

Making a claim

To make a claim online, you will need to sign in using a Government Gateway user ID and password and you will have to prove your identity to register for Government Gateway if you have not used it before.

To do this, you can use your National Insurance number or postcode and two of the following:

• a valid UK passport;
• a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland);
• a payslip from the last 3 months or a P60 from your employer for the last tax year;
• details of a tax credit claim if you made one;
• details from a self-assessment tax return if you made one; or
• information held on your credit record if you have one (such as loans, credit cards or mortgages).

There is a simple online application process that you can access here: https://www.gov.uk/apply-marriage-allowance

Whether we like it or not, the countdown to Christmas has officially started.

And that means you may be thinking about treating your staff with a Christmas gift or an office party. But before you get carried away, it is important to look at the tax implications to ensure you are not gifting the taxman.

Giving Christmas gifts and hosting parties for your employees is a worthwhile tradition, but it's important to be aware of the rules and regulations governing these festive gestures.

Tax implications

One of the primary considerations for employers is the tax implication of Christmas gifts and parties. Any gifts or cash bonuses provided to employees are subject to tax and National Insurance contributions, as they are considered additional income. Unless they can be paid under the Trivial Benefits or Annual function exemptions.

Trivial benefits

As mentioned, gifts of trivial value are exempt from tax and National Insurance contributions. To qualify as a "trivial benefit," the gift must not exceed £50, and it should not be a regular or contractual reward. Examples of such gifts include hampers, bottles of wine, or vouchers. However, it's essential to ensure that the gifts genuinely qualify as trivial and do not form part of an employee's regular compensation.

Annual functions

Employers who organise annual parties for their staff can benefit from a tax exemption of up to £150 per person. To qualify for this exemption, the event must be open to all employees, with the cost per head not exceeding the £150 limit. This exemption covers all expenses associated with the party, including food, drinks, entertainment and venue hire.

Keep records

Lastly, it's crucial for employers to maintain records of all expenses related to Christmas gifts and parties. This includes receipts, invoices and attendee lists. Accurate record-keeping is essential in case of any future queries from HM Revenue and Customs (HMRC).

To sum up

Spreading festive joy among your employees through Christmas gifts and parties is a worthy tradition. However, it's important to navigate the associated tax and regulatory considerations to ensure compliance. By following the guidelines mentioned above, you can create a joyful and compliant festive season for your staff, fostering a positive and inclusive workplace environment that everyone can enjoy.

Low-income earners are being encouraged to sign up to Help to Save to boost their savings by 50 per cent with government support.

Existing customers have received £146 million in bonus payments since the scheme launched in September 2018 and HM Revenue and Customs (HMRC) is urging individuals to take advantage of the generous savings scheme.

Help to Save is the government savings scheme for low-income earners and offers savers a 50 per cent bonus payment worth up to £1,200 over a maximum of four years.

Latest figures reveal that almost 450,000 customers opened a Help to Save account between September 2018 and March 2023, with nearly £372.5 million paid into accounts during that time.

Quick and easy

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Hundreds of thousands of people are benefitting from Help to Save. It’s a great way of saving whatever you can and the government will top up your savings by 50 per cent. It’s quick and easy to apply online or via the HMRC app.”

Customers can open a Help to Save account if they are receiving:

• Working Tax Credit
• Child Tax Credit and are entitled to Working Tax Credit
• Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period

Savers can deposit between £1 and £50 each month. They will earn an extra 50 pence for every £1 saved and bonuses are paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period. Savers who deposit the maximum amount of £2,400 will receive a bonus of £1,200 from the Government.

Nearly 383,000 account holders across the UK have made a deposit into their accounts and the average monthly deposit is £48. More than 90 per cent of savers invest the maximum £50 each month. They can make as many deposits as they like each month via debit card, bank transfer or standing order. Money can be withdrawn at any time, although this may affect their bonus payments.

Online access

Customers can easily manage their savings account online or through the HMRC app. They can check their balance, view savings and bonus details, find out when they’ll be paid a bonus, read any messages, set up a standing order or make withdrawals.

Victoria Todd, Head of the Low Incomes Tax Reform Group, said: “For those who are able to take part, the Help to Save account is a very attractive savings scheme, especially when the saver is able to maximise their bonuses. They can do this by paying in the maximum amount each month and making no withdrawals. Those who are eligible can still get bonus payments, even if they can’t save the maximum. That is why we recently welcomed the extension of the scheme to April 2025.”

The government is also offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.

1 November 2023 – Due date for Corporation Tax due for the year ended 31 January 2023.

19 November 2023 – PAYE and NIC deductions due for month ended 5 November 2023. (If you pay your tax electronically the due date is 22 November 2023.)

19 November 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2023.

19 November 2023 – CIS tax deducted for the month ended 5 November 2023 is payable by today.

1 December 2023 – Due date for Corporation Tax payable for the year ended 28 February 2023.

19 December 2023 – PAYE and NIC deductions due for month ended 5 December 2023. (If you pay your tax electronically the due date is 22 December 2023).

19 December 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2023.

19 December 2023 – CIS tax deducted for the month ended 5 December 2023 is payable by today.

30 December 2023 – Deadline for filing 2022-23 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2024-25.