MTD: A big change for your business April 2022 sees the final phase of Making Tax Digital (MTD) for VAT. But that’s just the tip of the iceberg. MTD for income tax (MTD ITSA) comes next, and implementation is likely to be altogether more challenging. And then there’s corporation tax. MTD basicsMTD requires individuals and businesses to: keep and preserve certain specific ...
Chancellor to deliver Autumn 2021 Budget on 27 October
HM Treasury has announced that Chancellor Rishi Sunak will deliver the Autumn 2021 Budget on Wednesday 27 October. On 7 September the Chancellor launched Spending Review 2021, which will conclude on 27 October and will be presented alongside the Autumn Budget. The Spending Review will outline government departments' resource and capital budgets from 2022/23 to 2024/25. The Sp ...
Plans to make requesting flexible working a day one right
UK workers could get more choice over when and where they work under new proposals to make the right to request flexible working a day one entitlement. The government will also introduce a day one right to one week's unpaid leave for carers balancing a job with caring responsibilities. The government says the plans will make for more productive businesses, whilst accommodating ...
Chancellor warned of redundancies as furlough scheme ends
The government's Coronavirus Job Retention Scheme (CJRS) ended on 30 September after supporting millions of workers during the pandemic. The government said the wages of more than 11 million people were subsidised for at least some of the scheme's duration at a cost of around £70 billion. Economists say there is likely to be a rise in unemployment due to new redundancies, des ...
Digital marketplaces to report sellers' incomes from 2023
HMRC has published a consultation that outlines plans to implement reporting rules for digital platforms first put forward by the Organisation for Economic Co-operation and Development (OECD). In February 2020, the OECD consulted on proposed rules setting out how digital platforms should collect information about the income of sellers and report it to tax authorities. Under t ...
1.25% tax increase to cover social care costs
The launch of a social care levy from 2022 will see all taxpayers facing a 1.25% tax charge under government plans, while dividend tax will also rise. There are warnings that the increase in National Insurance contributions for businesses could discourage the creation of new jobs and potentially put some at risk, while the individual tax burden is at its highest for decades U ...
State pension rises 2.5% as pension lock broken
The government has confirmed that the state pension will rise by 2.5% from April 2022, breaking the pension lock as a result of the impact from the pandemic. The minister, told MPs that this would be a one-year intervention and that the normal increase in line with average earnings increase would be reinstated from the 2023-24 tax year. As last year, once again the state pens ...
HMRC outlines changes to late payment penalty regime
HMRC has published a policy paper outlining the forthcoming changes to the penalties for late payment and interest harmonisation for taxpayers. The government intends to reform sanctions for late submission and late payments to make them 'fairer and more consistent across taxes'. Initially the changes will apply to VAT and Income Tax Self Assessment (ITSA). The changes will ...
Off-payroll labour – New IR35 rules in the private sector
From April this year, new rules were introduced to the private sector, similar to those used for the IR35 Public sector reform in 2017. It is now the responsibility of all public sector businesses and medium or large-sized businesses in the private sector, to decide the employment status of their workers. These are very technically complex rules with a lot of potential permutat ...
Business Expenses, Benefits and Loans.
Download PDF of Business Expenses, Benefits and Loans Employee expenses An employer may reimburse an employee for an expense tax-free if it is incurred wholly, necessarily and exclusively in the performance of their employment (s.336 ITEPA 2003). Where an employee incurs a cost on behalf of the company, tax & National Insurance Contributions (NICs) relief is given by ...