JD.com’s Joybuy Enters the UK! Middle East Conflict Evacuees May Receive Tax Exemptions; 1.3 Million Taxpayers Charged Late Payment Interest
- TBA
- Mar 16
- 5 min read
HMRC considers tax exemptions for expats fleeing Middle East
According to UK media reports, HM Revenue and Customs (HMRC) is considering granting certain tax exemptions to British nationals who have returned to the UK due to the ongoing conflict in the Middle East.
Under normal circumstances, if an individual spends more than 183 days in the UK during a tax year, they are almost certainly classified as a UK tax resident and must pay UK tax on their global income and other financial gains.
If they remain in the UK for more than 183 days within a fiscal year, they may be deemed UK tax residents and required to pay tax in the UK on their worldwide income and asset gains. As the current tax year will end next month, some returning individuals may already be approaching this threshold, depending on how much time they have spent in the UK over the past 12 months.
Guidance issued by HMRC states that if a country experiences civil unrest or a natural disaster, and the UK Foreign Office issues its highest-level advisory of “avoid all travel,” the time affected individuals spend in the UK may be treated as exceptional circumstances.
Under current UK rules, if someone exceeds the permitted number of days in the UK due to “exceptional circumstances,” they may disregard up to 60 additional days of presence in the country without those days counting toward the 183-day limit.
If the UK government advises citizens not to travel to certain countries, preventing them from returning to their usual place of residence, this situation may also be considered an exceptional circumstance. At present, the UK Foreign Office advises against travel to Iran, Israel, Iraq, and parts of Lebanon, while travel to United Arab Emirates, Kuwait, Qatar, Bahrain, and Jordan is recommended only if necessary.
It is understood that even if individuals from these countries remain in the UK for more than 183 days, HMRC may still consider granting tax relief and plans to review applications on a case-by-case basis.
In recent years, a large number of Britons have relocated to Middle Eastern countries to benefit from tax rates that are significantly lower than those in the UK. For example, according to estimates by Expat Insider, around 240,000 British citizens live long-term in Dubai. As tensions in the region continue to escalate, charter flights last week transported British citizens back to the UK. Currently, about 160,000 British nationals have registered their residence in the region.
Tax advisory firm Blick Rothenberg noted that despite the existence of such rules, people evacuated from the Middle East could still unintentionally become UK tax residents. The firm explained that no one knows how long the crisis will last, meaning some individuals could remain in the UK for three to five months or even longer.
In response, an HMRC spokesperson said that the existing rules already account for exceptional circumstances, including situations affecting people due to war. At the same time, the authority emphasized its core principle: individuals who live in the UK should pay tax in the UK.
Chinese retail giant launches in UK with new Joybuy business
Chinese online retail giant JD.com has officially launched operations in the United Kingdom through its new platform Joybuy. The e-commerce company, valued at around £30 billion, rolled out the shopping platform on March 16, aiming to challenge major competitors in the UK market, including Amazon.
As China’s largest retailer, JD.com will offer a wide range of products on the platform, including technology goods, home appliances, beauty products, household items, groceries, and other daily essentials. The company said that after establishing its own logistics network, it will be able to provide next-day delivery to approximately 17 million households across the UK from the day of launch.
Over the past two years, the US- and Hong Kong-listed company withdrew from two potential acquisitions of major UK retail brands. In 2024, the group abandoned plans for a possible deal to acquire Currys, and in September last year, it also walked away from talks with Sainsbury's regarding a potential takeover of Argos. With the launch of its new platform, JD.com is now set to compete directly with these retailers as well as many other players in the market.
At the same time, the company is expanding into six new European markets, including Germany, Netherlands, France, Belgium, and Luxembourg. In addition, JD.com reached a €2.2 billion (about £1.9 billion) deal last year to acquire the Germany-based electronics retail group Ceconomy.
1.3m taxpayers paid £137m in late payment interest
According to data obtained by investment platform AJ Bell, around 1.3 million taxpayers were charged late payment interest by the UK tax authority HM Revenue and Customs (HMRC) during the 2023–24 tax year, with the total amount reaching £137 million. On average, each taxpayer paid just over £100 in interest.
The significant increase in the total penalties was partly driven by HMRC’s decision to raise the late payment interest rate.
From 6 April 2025, the rate increased from the Bank of England base rate plus 2.5% to base rate plus 4%. This meant that for many months the interest rate reached as high as 8.25%. In addition, the interest is calculated daily on the original tax owed, allowing the total amount due to rise quickly.
Charlene Young, pensions and savings senior specialist at AJ Bell, said the latest figures suggest that many taxpayers are still struggling to navigate the UK’s complex tax system, while HMRC has collected additional revenue as a result. Despite moves to relax the rules on who must submit a Self Assessment tax return, millions of taxpayers have still paid late payment interest in recent tax years.
Since 2018, the tax-free dividend allowance has been repeatedly reduced and now stands at just £500, far below its original £5,000 level. In addition, dividend income tax rates were increased in 2022 and will rise again for both basic-rate and higher-rate taxpayers in the next tax year.
A similar trend has occurred with investment profits. For gains outside Individual Savings Account (ISAs) and pensions, the capital gains tax (CGT) allowance has been reduced and tax rates have recently been increased.
These “multiple factors combined” mean that many small investors are now required to calculate and pay these taxes for the first time, while existing taxpayers are facing higher tax bills. If taxpayers struggle to understand the system or miss deadlines, they may face higher interest charges and penalties.
The increasing complexity of the tax system is also believed to be contributing to a rise in errors and confusion among taxpayers.
Meanwhile, concerns are growing that the upcoming Making Tax Digital (MTD) policy for income tax reporting could further increase late payment interest charges. Under the plan, from April 2026, landlords, self-employed individuals, and sole traders with annual income above £50,000 will gradually be required to adopt the new digital reporting system after the 2024–25 tax year.
For landlords and small business owners, the changes are expected to create additional administrative burdens and require them to adapt to a new penalty points system.
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