UK Drops Mandatory Digital ID Plan! Self Assessment Tax Deadline Approaches! China’s Trade Surplus Tops $1 Trillion for the First Time
- TBA
- 5 days ago
- 5 min read
Government drops plans for mandatory digital ID to work in UK
According to the BBC, the UK Labour government has abandoned plans to make a digital identity scheme mandatory. The proposal had included a requirement for individuals to register for a Digital ID system to prove they were legally entitled to work in the UK.
Under the latest arrangements, by 2029 the UK’s “Right to Work checks” will be fully digitised — for example, verification could be completed using biometric passports — but participation in a new digital identity scheme will no longer be compulsory.
This change marks a clear shift in the government’s position. When the policy was first announced last year, Prime Minister Keir Starmer stated unequivocally: “If you don’t have a digital ID, you won’t be able to work in Britain. It’s as simple as that.”
This is the latest in a series of “U-turns” by the Labour government since taking office. Previously, it has already retreated on issues including welfare reform, cuts to winter fuel payments, and farm inheritance tax.
When the policy was originally announced, the mandatory digital ID for workers was intended to help combat illegal working by undocumented migrants. However, it is understood that the revised plan will no longer focus solely on immigration, instead placing greater emphasis on the convenience digital IDs could offer the public in accessing government services.
Since the policy was unveiled last September, it has faced sustained criticism. A parliamentary petition opposing the introduction of digital IDs has attracted nearly three million signatures, and some Labour MPs have also voiced opposition to the compulsory elements of the original proposal.
Under current rules, employers must check whether job applicants have the legal right to work in the UK. Since 2022, employers have been able to carry out online checks for holders of UK or Irish passports using government-approved digital verification services. The Home Office also operates an online system to verify the electronic immigration status of some non-UK and non-Irish nationals.
Details of how the digital ID will operate have not yet been published, but it is expected to be based on two government systems: Gov.uk One Login and Gov.uk Wallet. The ID would include information such as a person’s name, date of birth, nationality, residency status and photograph.
More than 12 million people have already registered for One Login, which can be used to apply for a veterans’ card, report a lost passport, or manage a lasting power of attorney. Gov.uk Wallet has not yet officially launched, but is expected to allow users to store a digital ID on their smartphones.
This represents the latest in a series of U-turns by the Labour government since coming to power, and the 13th major policy reversal in the past 18 months. Earlier reversals included changes to welfare reform, reductions in winter fuel payments, and farmers’ inheritance tax.
The Liberal Democrats said the policy was “doomed from the start” and called for the “billions of pounds originally earmarked for a mandatory digital ID scheme” to be redirected to the NHS and frontline policing. Their Cabinet Office spokesperson mocked the situation, saying: “Downing Street will probably need to buy motion sickness tablets in bulk to cope with all these sudden policy U-turns.”
China announces record $1tn trade surplus despite Trump tariffs
Despite US President Donald Trump’s tariff policies continuing to weigh on the global economy in 2025, data released last week showed that China’s full-year trade surplus reached US$1.19 trillion in 2025, the highest level ever recorded globally. This also marked the first time China’s annual trade surplus exceeded US$1 trillion, surpassing the previous record of US$993 billion set in 2024.
The data show that in seven months of 2025, China’s monthly trade surplus exceeded US$100 billion, indicating that the tariff measures launched by Trump did not have a material impact on China’s overall external trade. While China–US trade weakened somewhat, this effect was offset by rising exports to other regions, particularly Southeast Asia, Africa and Latin America, where exports increased significantly.
Analysts believe that China’s massive trade surplus mainly reflects strong overseas demand for Chinese goods and relatively weak domestic demand. Affected by the property crisis and rising debt levels, Chinese companies have become more cautious about investment, while consumer spending has remained subdued, leading to weaker import demand. Official data show that China’s imports grew by only 0.5% in 2025.
In addition, a weaker renminbi, ample supply of goods, and persistently high inflation in Western countries have enhanced the price competitiveness of Chinese exports. Exports from China’s high-end manufacturing sectors — including green technologies, artificial intelligence-related products and robotics — recorded notable growth.
As Chinese goods and services become further embedded in global supply chains, China’s trade performance in 2026 is likely to remain strong. However, even as overseas sales support job creation and economic growth at home, Chinese products may face “stricter scrutiny” in foreign markets, including measures such as the United States and the European Union announcing the removal of duty-free exemptions for low-value parcels.
Almost 340,000 Self Assessment filers have already paid their tax bill using the HMRC app
HM Revenue & Customs (HMRC) has said that since 6 April 2025, nearly 340,000 taxpayers have paid their Self Assessment tax bills using the official HMRC app, representing an increase of almost 65% year on year in the number of people using the app to pay their tax.
Under the rules, taxpayers must submit their tax return and pay any tax due by 31 January. Taxpayers who are unable to pay their bill in full and owe less than £30,000 may, if eligible, apply for a Time to Pay instalment arrangement.
In addition to using the HMRC app, taxpayers can also pay by bank transfer, Direct Debit, or online via the GOV.UK website.
With the deadline now just two weeks away, taxpayers who fail to submit their return by 31 January will face penalties, including:
An initial fixed penalty of £100, even if no tax is owed or the tax has already been paid;
After three months, a daily penalty of £10, up to a maximum of £900;
After six months, an additional penalty of 5% of the tax due or £300, whichever is higher;
After twelve months, a further penalty of 5% of the tax due or £300, whichever is higher.
In addition, if the tax itself is not paid on time, late payment penalties of 5% will be charged at 30 days, six months and twelve months, and interest will accrue on any unpaid tax.
HMRC also reminded taxpayers that for those who sold shares or other assets after 30 October 2024, changes to Capital Gains Tax rates must be taken into account when completing their Self Assessment return. The system may not automatically calculate the correct amount of tax, and taxpayers may need to adjust their liability themselves using the calculation tool provided on GOV.UK.
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