April Questions and Answers
Newsletter issue – April 2023
Q. In his Spring Budget, the Chancellor said 'full expensing' would apply to plant and machinery. Does this mean I can write off the balance brought forward in my plant and machinery pool, which was previously written down at 18% on the reducing balance method?
A: The new 'full expensing' rules announced in the Spring Budget on 15 March 2023, only apply to new (not second-hand) assets purchased on and after 1 April 2023.
If the brought-forward balance in your plant and machinery pool is now no more than £1,000, you can write off that amount under the current rules, otherwise, you must carry it forward reducing it by 18% each year until it reaches £1000.
Q. I've been receiving text messages from tax.service.gov.uk advising of new PAYE codes for 2023/24. However, when I log into the HMRC website, it says that no new PAYE codes have been issued. This has been going on for weeks, is it a scam or genuine contact from HMRC?
A: These messages are genuine, but there is a fault with the HMRC system that it is sending out these text messages when no PAYE code changes have been issued.
Q. I want to top up my NIC record by paying to complete seven tax years. To pay online I need an 18-digit reference number which is only available by calling HMRC, but the HMRC telephone line is never answered. How can I make the payment?
A: It is difficult to get through to HMRC by phone, and that is why the deadline for making voluntary NIC payments has been extended to 31 July 2023, as we explained above.
You can pay the NIC due by cheque made out to "HM Revenue and Customs only". But be sure to write your name and National Insurance number on the back of the cheque, and don't fold the cheque. Also include a cover letter which details:
- your name, address, and phone number
- your National Insurance number
- how much you are paying
- the period you are paying for
Send this letter and cheque to:
HM Revenue and Customs
National Insurance Contributions and Employer Office
BX9 1AN