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Articles by Paul Retout
Marshmallows – a sweet tax affair
Gimme some S’more / © Deposit Photos As I have mentioned in many of my tax articles, tax can be quite complicated. A recent tax case on marshmallows (yes, marshmallows!) shows just how complex tax can be.
POCA – Where does all the money go?
The Home Office retains approximately 50 per cent of recovered funds The Proceeds of Crime Act 2002 (‘POCA’) sets out the legislation as to how criminal assets are recovered, usually through confiscation orders. The Crown Court, when considering a confiscation order, must determine whether the defendant had a ‘criminal lifestyle’ and whether they benefited from their ‘general criminal conduct’.
HMRC penalties - what to with them!
Those of you who are self-employed will know that the 31 January 2026 was the last day for filing your online self-assessment tax return. Failure to have done so will attract an immediate penalty of £100 and will accumulate to £1,600 if not filed within the 12-month period, excluding any interest or late payment penalties. Many of the tax cases we see, particularly those with tax debt, are a direct result of penalties being charged for non-filing of self-assessment tax returns.
Budget 2026 - how it impacts upon you
Rachel Reeves holding the Budget Box / © Deposit Photos On 26 November 2025 Rachel Reeves, the Chancellor of the Exchequer, presented the 2026 Budget. With so many areas ‘leaked’ in the period leading up to the Budget, there were no real surprises despite the frenzy before the announcements by financial commentators.
HMRC - direct access to your bank account
Piggy Bank, Empty/ © Deposit Photos In the 2025 Spring Statement the Chancellor announced that HM Revenue and Customs (HMRC) would re-commence Direct Recovery of Debt (‘DRD’) having been paused during the COVID–19 pandemic. By way of background HMRC collected last year £858.9 billion in tax of which around 90% was paid on time with the balance becoming a debt.
Umbrella companies – do they keep the tax out?
I recently had a telephone call from the resettlement department in a prison saying that they had an individual with some £15K of tax debt and asked if I could do anything. For many of the tax years the individual was in prison and the tax penalties could be cancelled but in the tax year 2018/19 he received income in the form of a loan, what HMRC describe as ‘disguised remuneration’, and he had become unwittingly involved in a tax avoidance scheme.
Getting your tax affairs right the first time
On 1 September 2025 HMRC issued its latest set of Guidelines for Compliance (GfC13) to assist taxpayers in getting their tax returns and other documents submitted correctly and completely. It is essentially a summary of its interpretation of current law and HMRC policy and is not a change in the law itself. HMRC believes that the guidelines will not change anything for most customers, as the vast majority will use their ‘best efforts’ in completing and filing their tax affairs.
HMRC’S Transformation Roadmap
On 21 July 2025 HMRC launched their Trans-formation Roadmap with James Murray MP, Exchequer Secretary to the Treasury, stating: ‘We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers. By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer services practices, and a laser-focus on delivering taxpayer value for money by ensuring everyone pays their fair share’.
Employment Allowance
I know many of you are starting new businesses on release and will be employing staff under a payroll scheme that you will need to register with HMRC. As you know, part of the cost of employing a member of staff is employer’s Class 1 National Insurance currently 15% in the 2025/26 tax year. But did you know that HMRC provides a credit against your employer’s tax liability by up to £10,500?
Taking the tax hassle away from the side hustle
I know that many of you plan to start up a business and go self-employed on release and others will also enter employment under PAYE. As you are aware you are entitled to earn £12,570 without paying tax. What about those other sources of income you might have or those second jobs? Were you aware, for instance, that HMRC introduced rules in January 2024 requiring websites and apps to report users’ incomes?
Your personal tax account
The HMRC Personal Tax Account (PTA) is a FREE tool that can be downloaded onto your mobile phone on release and is available as an app on Play Store and Apple Store. It enables you as the taxpayer to effectively take control of your tax affairs securely and online.
Spring statement – how it impacts you
On 26 March 2025 the Chancellor, Rachel Reeves, presented the Spring Statement against a backdrop of a lack of economic growth – despite this being the government’s ‘number one mission’. Originally, the plan had been to update Parliament on the UK’s finances five months after her October Budget. The main issue was that the Office for Budget Respon-sibility (‘OBR’) had reduced its economic growth forecasts for the UK in 2025 from 2% to 1%.
Making tax digital (part 2)
In my last article I covered the basics of Making Tax Digital (‘MTD’) and how it will impact those of you that are planning on going self-employed on release. MTD is fundamentally about keeping proper accounting records so that an individual pays the correct amount of tax.
Making tax digital (part 1)
HMRC states that their digital initiatiave Making Tax Digital (‘MTD’) will make it easier for individuals and businesses to get their tax right and keep on top of their tax affairs. Those of you that are on self-employment courses in prison should be aware of MTD and that you will need to keep digital accounting records for your business on release.
Tax penalties - how to kick them into touch!
The 31st of January 2025 marked the final day to submit your 2023/24 self-assessment tax return electronically before a £100 tax penalty was charged. This can increase to a total penalty of £1,600 over a twelve-month period where the tax returns remain outstanding. Being in prison for a couple of tax years could mean you are faced with over £3,000 of tax penalties for non-filing when you are released. This is the last thing you need when you are trying to get work and move on with your life.
No escape from HMRC whilst in prison
Many prisoners I speak to often believe that they are in a ‘tax bubble’ whilst in prison and out of reach of HMRC. Well now there is a tax case that clearly proves there is no hiding in prison from HMRC and avoiding your tax responsibilities. By not facing your tax responsibilities whilst in prison you are accumulating an even bigger problem for when you are released.
Anti-Money Laundering registration
In my last article I covered some of the Anti-Money Laundering (‘AML’) practices adopted by banks, solicitors and even car dealerships. Asking for a copy of your passport and an up-to-date utility bill may seem pointless to you, but these organisations are using this information to identify us as part of their AML procedures of ‘knowing their customer’.
Anti-money laundering - AML
I am sure many of you have been asked at some point to provide proof of identification and address when, for instance, opening a bank account or appointing a solicitor. Even when buying a car from a dealership, you now need to provide confirmation in certain circumstances as to where the deposit originated.
How do you know whether you have a Credit Industry Fraud Avoidance System (CIFAS) marker against your name?
In my previous article I covered the basics of what a CIFAS marker was and how it can impact upon you after release, particularly when applying for a financial product. In this article I cover the different types of markers that can be applied against you and what you can do about them. Remember that CIFAS markers may not appear on your credit profile.
How do you know whether you have a CIFAS marker against your name?
Introduction Have you ever heard of CIFAS markers? Until last week neither had I, until I was asked why an individual who had a 970 credit rating on Experian still could not get a loan or bank account. Unbeknown to him, because he had received a Covid Bounce Back Loan through his limited company that he had not been able to repay due to being in prison, a CIFAS marker was placed against his name.
Tracing your ‘old’ pensions - have you lost contact with £9,500?
We have recently been contacted by a resident who wanted to trace his pensions as he was nearing retirement age.
Going Green - how your new business could benefit
Whilst there is a lot of emphasis on writing business plans and preparing budgets and cash-flows for your new business, and rightly so, I thought I would add a little on how ‘Going Green’ could impact positively on your business. Unsurprisingly, alternative forms of energy have come to the fore over the past eighteen months with electricity prices reaching an all-time high and a renewed focus on reducing not only our personal carbon footprint but also those of our businesses.
End of tax year Practical things you can do
The 5th of April 2024 marked the end of the 2023/24 tax year. My recent podcast on National Prison Radio highlighted the fact that there are a number of positive things you can do whilst in prison with regard to your tax affairs. In particular if you are self-employed it is a good time to bring your tax affairs up to date no matter how far you are behind with filing your self-assessment tax.
Budget 2024
It only seems like five minutes ago I was writing an article on the Autumn Statement! With a General Election anticipated now for the autumn it was thought that Jeremy Hunt, Chancellor of the Exchequer, may cut the basic rate of income tax. Instead, he went for a broad range of measures including the headline ‘further reduction in National Insurance’.
Community Interest Company (CIC)
Since I wrote my article on Limited Companies in the February issue, I have had a number of enquiries about Community Interest Companies (‘CIC’) and as to how they are structured. A CIC is a special type of limited company – also known as a social enterprise – which primarily exists to benefit the community with a social purpose, rather than simply trying to make a profit for shareholders.
What is a limited company?
A limited company is one of the ways of running your business. Fundamentally it is a separate legal entity in its own right despite you perhaps owning 100% of the share capital. The liability of the shareholders normally equates to the amount that is subscribed for the shares. Trading through a limited company is very different from being self-employed as you are working for the company and cannot simply ‘help yourself’ to company money, despite being the majority shareholder.
The Autumn Statement - how it impacts on you
A welcome 2024 to all Inside Time readers! On 22 November 2023, Chancellor Jeremy Hunt delivered the Autumn Statement that probably went unnoticed within the prison environment. However, the Chancellor announced a range of measures that will impact all of you leaving prison in 2024 and beyond. Therefore I thought it would be useful to summarise to readers on how the Autumn Statement impacts all of us, whether in prison or not.
The Autumn Statement – how it impacts on you - insidetime & insideinformation
A welcome 2024 to all Inside Time readers! On 22 November 2023, Chancellor Jeremy Hunt delivered the Autumn Statement that probably went unnoticed within the prison environment. However, the Chancellor announced a range of measures that will impact all of you leaving prison in 2024 and beyond. Therefore I thought it would be useful to summarise to readers on how the Autumn Statement impacts all of us, whether in prison or not.
Grant funding for your business idea
The National Lottery I have received a number of phone calls and letters from individuals in prison about funding for their business when they are released. My advice to them is to start planning now and explore the funding options that are potentially available to their business. A great place to start is the prison library and in particular the Hardman Directory.
The right to be forgotten
The term ‘right to be forgotten’ represents the desire of individuals to simply get on with their lives without being stigmatised as a result of a particular action that happened in the past. This is particularly pertinent with regards to individuals leaving prison.
Changing your name
It is a common fact that when you have served your prison sentence you begin another one in the community when you are released. Normally, the main driver in changing your name on release is to try and avoid what has been called the ‘informal’ disclosure’ – particularly when your name is searched on one of the search engines. You may have moved to a new area to live, got a new job, and made new friends and then it is discovered that you have been to prison.
NS&I – Investment Account open for business for prisoners - insidetime & insideinformation
My learned friend from HMP Full Sutton has recently written to me explaining how an Investment Account from the NS&I can be opened whilst in prison. I must stress that this is for an ‘investment account’ and not a ‘bank account’. Nevertheless, opening such an account is particularly pertinent when perhaps you receive a lump-sum from a pension drawdown or selling a property etc, and you need somewhere to credit the funds to.
Prisoner Finances
As I mentioned in the last article, recently I stumbled across a paper written by HMPPS entitled ‘Manage Prisoner Finances PSI 01/2012’ last updated in September 2022 and ‘unclassified’. Furthermore, I would recommend readers to source this document from the prison library as it is a fascinating read and encapsulates the responsibility of prisons when dealing with your money. The document is essentially a set of instructions for ‘all staff in prison establishments’.
Prisoner finances
Researching for another related article, I stumbled recently across a paper written by HMPPS entitled ‘Manage Prisoner Finances PSI 01/2012’ – last updated in September 2022 and ‘unclassified’. I would recommend readers to source this document from the prison library as it is a fascinating read and encapsulates the responsibility of prisons when dealing with your money. The document is for ‘all staff in prison establishments’.
Yet another Budget in 2023
It is difficult to believe that on 15 March 2023 Jeremy Hunt announced the third Budget within the current tax year! It is easy to think that the Budget does not impact on you within prison, but of course it does, whether it be the impact on your family, your savings, how much you earn on ROTL, or how much tax you pay under employment or as self-employed when you are released. With this in mind, I thought it would be worth outlining the key announcements from the Budget.
Working from home on release
Tax break Many of you on release may set up your business from home, and I thought it would be useful to explore the expenditure that could be recovered as a deductible expense. Even established businesses can claim that they work from home during the week undertaking such work as estimates, billings, business calls, meeting clients, filing storage or simply to bring their accounts up to date.
Bounce Back Loans
I am receiving a number of enquiries as to how to deal with a Bounce Back Loan once you are in prison. The scheme was opened by the Government in March 2021 and lent £46.53billion to 1,500,000 qualifying claimants. The success of the scheme was fuelled by the fact that banks tended to reduce their ‘lending criteria’ as their loan risk was 100% guaranteed by the Government.
A fresh start with HMRC
The 31st December 2022 marked the end of the calendar year while the 31st January 2023 is the last date for filing your 2021/22 self-assessment tax return. This is important, as late filing will incur a £100 penalty. Any outstanding tax for 2021/22 and the on account payment for the tax year 2022/23 is payable by 31st January 2023 with a further 5% surcharge added if any outstanding tax is not paid by 28th February 2023.
Yes Minister!
On 16 November, I was invited to speak at the Hidden Entrepreneur event held at HMP Thorn Cross.
Mini-Budget 2022 - how it impacts you
They say a week is a long time in politics and that was certainly the case for Kwasi Kwarteng who, as Chancellor of the Exchequer, was forced to resign on 14 October 2022 – having been appointed on 6 September 2022. His Mini-Budget, launched on 23 September 2022 with £45 billion of tax cuts, contributed to sending the markets in turmoil, particularly as he had not fully briefed the Bank of England on the financial risks of his Mini-Budget.
Power of Attorney
In the past few weeks I have had a number of phone calls on the subject of Power of Attorney (‘POA’) and there would appear to be some confusion about their use and definition. A POA is a legal document created by the ‘donor’ whilst mentally able to do so, in order to grant, or mandate, to someone else (the ‘attorney’) the power to manage their affairs whilst they are unable to do so or do not have the mental capacity to do so themselves.
Applying for a passport whilst in prison
Following on from my article on ‘Identity’ last month, I will now cover the subject of applying for a passport whilst in prison. I was quite surprised to notice that guidance was issued to Home Office staff on 9th August 2021 for when they receive passport applications from prisoners.
Focus on the FSB (Federation of Small Businesses) Part 2
As I mentioned in my previous article, we believe at Through the Gate™ that being a member of the FSB will give you the additional support you require when starting and running your business after release. FSB means inclusive support when you are starting your business after release, the provision of market leading benefits (see below) and a voice heard in governments at all levels, including HMRC.
Focus on the FSB (Federation of Small Businesses) Part 1
I recently bumped into an FSB Membership Advisor when I had a drink of coffee at my local café in Ruthin, North Wales. A couple of hours later we were still talking as to how the FSB could help those being released from prison and entering self-employment! I can confirm that Through the Gate™ is now a proud member of the FSB and they are helping us develop our offering to residents and former residents of HMPPS.
Bankruptcy - the final option?
In my two previous articles I have covered personal insolvency options including Debt Relief Orders (‘DROs’) and Individual Voluntary Arrangements (‘IVAs’) Where debts are over £30,000 Debt relief Orders do not apply but bankruptcy can be an option. There is common misconception that you only get made bankrupt by someone you owe money to. Many bankruptcies take place because individuals decide to apply for their own bankruptcy.
Individual Voluntary Arrangement
In my last article I covered the Debt Relief Order (‘DRO’). An alternative to bankruptcy and a DRO is an Individual Voluntary Arrangement (IVA), and is typically a contract between the debtor (you) and your creditors. An IVA binds all creditors who were entitled to vote in the arrangement and includes those creditors that voted against it. The debtor will need 75% of the creditors to agree to the IVA to prevent a formal bankruptcy proceeding.
Paul Retout - The Tax Academy
On 26 November 2025 Rachel Reeves, the Chancellor of the Exchequer, presented the 2026 Budget.
The Tax Academy partners with Lloyd’s Coverholder
Paul Retout Fact sheets on the way to help prison leavers be their own boss Having finished one sentence, I often feel that after release a prisoner starts another. Trying to get a bank account opened, a credit card, a mobile phone etc. are just a few of the hurdles that are faced on release.
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