Month: February 2025

From Saturday, the cost of wine and spirits will climb as the government raises alcohol duty in line with inflation and implements new rules linking tax levels to the strength (ABV) of each drink.
While trade bodies warn that this will be a “bitter blow” for the sector, the duty on draught pints is set to fall by a modest 1.7 per cent—resulting in roughly 1p off an average-strength pint.
Under the revised system, taxes on some stronger drinks will go up even more. A temporary reprieve for certain wines ended last week, meaning duty on a 14.5% ABV bottle of red wine has risen by 54p, according to the Wine and Spirit Trade Association (WSTA). The WSTA argues that such increases risk undermining government revenue goals, as higher prices could prompt consumers to buy less, while at the same time squeezing drinks producers.
However, a Treasury spokeswoman defended the policy, highlighting the government’s drive to “modernise and simplify” the duty system in a way that supports lower-strength drinks. The Treasury has also expanded small producer relief for beverages below 8.5% ABV, aiming to help smaller-scale brewers and craft producers.
Although pubs welcome the minor tax break on draught drinks, they still face a wave of cost pressures. This April, increased National Insurance contributions for employers and the higher minimum wage could force pubs to raise pint prices by as much as 30p to 40p. Tim Martin, chief executive of JD Wetherspoon, estimates that staff cost rises will amount to £80 million a year for the chain.
The British Beer and Pub Association is urging the government to maintain support for the sector, warning of an “April cliff edge”. Yet some union representatives maintain that large pub companies should absorb some cost increases rather than passing them on to customers.
For consumers, the cost of many alcoholic beverages—especially wine and spirits—will inch upward just as living costs remain high. Meanwhile, small brewers and producers offering lower-strength pints stand to benefit from the changes, potentially helping them to compete against supermarket deals on alcohol.
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Taxes on wine and spirits set to rise as duty on a pint is cut

Roman Abramovich, the sanctioned Russian oligarch, is facing renewed scrutiny after a group of MPs urged HM Revenue & Customs (HMRC) to investigate allegations that he may owe up to £1 billion in unpaid taxes.
The intervention follows reports by the BBC and the Bureau of Investigative Journalism indicating that offshore investments worth billions of pounds may have been effectively managed from the UK, thereby incurring a domestic tax liability.
In a letter to HMRC, Joe Powell, the Labour MP who heads a parliamentary group on fair taxation, pressed for a “proper investigation” in light of evidence suggesting that some of Abramovich’s British Virgin Islands (BVI) ventures were, in practice, administered on home soil. The letter pointed to leaked files revealing investments worth $6 billion routed through the BVI, yet allegedly overseen by individuals based in the UK, potentially triggering UK tax obligations.
HMRC responded by stating it is “committed to ensuring everyone pays the right tax under the law, regardless of wealth or status.” Abramovich’s lawyers, meanwhile, maintain that he “always obtained independent expert professional tax and legal advice” and “acted in accordance with that advice.”
The leaked papers—examined by the BBC, The Guardian, and the Bureau of Investigative Journalism as part of the ‘Cyprus Confidential’ project—suggest that a close associate of Abramovich, the British citizen Eugene Shvidler, may have exercised considerable authority over BVI-registered investment vehicles. Under UK law, if an offshore company’s strategic decision-making occurs within the UK, that firm could be subject to British taxes.
Abramovich, long known for his ownership of Chelsea FC—whose funding has also been linked to the offshore structure—was sanctioned by the UK government in 2022 over his ties to the Kremlin. While offshore companies can legitimately reduce tax bills if fully managed and controlled outside the UK, MPs claim that the sums in question demand a full investigation.
“Given the scale of the sums involved, ensuring that any unpaid taxes are recovered is a matter of public interest,” Powell’s letter reads, referencing the need for extra public funding in light of current economic pressures.
Lawyers representing Shvidler and Abramovich insist the arrangements were underpinned by professional advice and fully compliant with relevant regulations. However, critics argue that leaked documents present a “tax dodge” masquerading as a standard offshore investment, prompting fresh calls for HMRC to step up efforts to reclaim any revenue rightly due.
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Abramovich faces fresh calls for HMRC probe over potential £1bn tax bill

Millions of UK taxpayers remain at risk of a £100 fine if they fail to file their online self-assessment tax returns by midnight tonight, according to HM Revenue & Customs (HMRC).
The warning comes as more than three million people have yet to submit their returns for the 2023-24 tax year, prompting HMRC to advise last-minute filers to go online for help and to use the HMRC app to pay any outstanding balance once their returns are finalised.
In a significant shift this year, platforms such as eBay and Vinted must share data with HMRC on sellers who meet specific thresholds—selling 30 or more items or earning at least £1,700. This information will be matched against individual tax returns, although HMRC emphasises that there is no new tax charge for people merely selling personal items occasionally.
“We cannot be clearer—if you are not trading and just occasionally sell unwanted items online, there is no tax due,” HMRC said.
Anyone who misses the midnight filing deadline will incur an immediate £100 penalty, even if they have no tax to pay. After three months, daily fines of £10 per day (up to a maximum of £900) apply, with further penalties after six and twelve months, plus added interest on any overdue amount.
Around 8.6 million people have already filed self-assessment returns, which include earnings from small businesses, freelance work, and additional income streams. However, accountant Benedicta Egbeme from BeniRatio Finances cautions that individuals who earn more than £1,000 through side businesses—such as online reselling or providing ad-hoc services—must register for self-assessment.
While the new reporting requirements do not create a fresh tax charge, they aim to ensure that those genuinely trading or offering services for profit are correctly reporting their earnings. HMRC advises that potential sellers at risk include those buying goods for resale, manufacturing items to sell, offering delivery driver services, or letting out properties for holiday rentals.
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Millions face £100 penalty as midnight self-assessment deadline looms