Government Unveils Plans to Boost Savings and Simplify Tax System
Millions could soon get a financial leg-up as the government rolls out fresh tax measures aimed at making saving easier and the whole system simpler.
Help to Save Scheme Set for Overhaul
- The Help to Save programme could become a lot more user-friendly.
- Reforms may change how bonuses are calculated, extend account duration, and tweak eligibility rules.
- Since launching in 2018, over £255 million has been saved through the scheme.
The Help to Save plan is aimed at low-income workers claiming certain benefits like Universal Credit or Working Tax Credit. Savers get a 50p bonus for every £1 they put in, with a maximum deposit of £50 a month and accounts open for up to four years. The government wants more people to sign up and save for the future.
Parents Could Claim Missed State Pension Credits
Parents who never claimed Child Benefit might have missed out on National Insurance credits that build their state pension. The government plans to fix this by letting affected parents claim these credits retrospectively.
Victoria Atkins, Financial Secretary to the Treasury, said:
“Rising prices are putting household budgets under strain – and it’s in tough times like these that many people turn to their savings.
We want to support savers and make sure the tax system provides them with the options they need to shore-up their finances, helping them through rainy days as well as helping them plan for the future.
A simpler tax system will also help deliver on the Prime Minister’s priorities of creating economic growth and reducing our country’s debt.”
More Tax Tweaks Announced in Latest Shake-Up
- The government has published 23 technical tax updates as part of the 2023 Tax Administration and Maintenance Day (TAMD).
- Consultations launched on new criminal offences for tax avoidance promoters and speeding up director disqualifications.
- Repayment agents will soon need to register with HMRC to protect taxpayers claiming refunds.
- Plastic Packaging Tax reforms on the table to boost chemical recycling and cut plastic waste.
- Customs paperwork for low-value exports could be cut, making it easier for businesses post-Brexit.
- Plans to digitise Stamp Taxes on Shares (STS) to speed up share transaction charges.
What’s Next?
Parents don’t need to act now—legislation is coming to help those eligible claim missing credits. The government aims to keep pushing simplification to help hardworking Brits save money and cut red tape.
