Category: Tax

Comments Off on Work from home tax relief may not be available in 2022/23

Work from home tax relief may not be available in 2022/23

Work from home tax relief may not be available in 2022/23

Employees who claimed tax relief for working from home during the pandemic may no longer qualify in the 2022/23 tax year as HMRC changes its guidance for the scheme. During the COVID-19 pandemic, people who could do their normal job at home were required to do so at various times and were allowed to apply … Continued

Comments Off on HMRC raises interest rates on late tax payments

HMRC raises interest rates on late tax payments

HMRC raises interest rates on late tax payments

HMRC has confirmed it will raise interest rates on late tax bills by 0.25 percentage points after the Bank of England increased the base rate of interest to 1%. The announcement means the late payment interest rate and corporation tax pay and file rate will increase to 3.5% from 24 May 2022 (16 May 2022 … Continued

Comments Off on National Insurance and dividend 1.25% uplift underway

National Insurance and dividend 1.25% uplift underway

National Insurance and dividend 1.25% uplift underway

The Government has at last increased National Insurance (NI) and dividend tax by 1.25 percentage points after months of anticipation. The 1.25% uplift came into effect on 6 April 2022 and will apply until April 2023, after which a separate health and social care levy will apply on peoples’ income at 1.25%. The Government said … Continued

Comments Off on IR35 reform landing period ends

IR35 reform landing period ends

IR35 reform landing period ends

Penalties now apply to businesses that make mistakes under new IR35 rules for the private sector. The Government extended the off-payroll working rules reform to the private sector in April 2021, but promised to be lenient on mistakes in the first year. The landing period has now ended, so employers caught within the reformed IR35 … Continued

Comments Off on House of Lords raises concerns over IR35

House of Lords raises concerns over IR35

House of Lords raises concerns over IR35

The Economic Affairs’ Finance Sub-Committee of the House of Lords has written to the Government, listing key recommendations on off-payroll working rules known as IR35. IR35 legislation aims to prevent tax avoidance by workers who contract out their services through a personal limited company for tax purposes but enjoy the perks a regular employee would. … Continued

Comments Off on Over one million individuals use extra time to file tax returns

Over one million individuals use extra time to file tax returns

Over one million individuals use extra time to file tax returns

More than one million individuals completed their self-assessment tax return by the extended deadline at the end of February 2022. HMRC estimates 11.3m of 12.2m of the taxpayers who had to file a self-assessment tax return for the 2020/21 tax year did so by 28 February 2022. Individuals and trusts required to submit a self-assessment … Continued

Comments Off on HMRC eyes reform of stamp taxes and multiple dwellings

HMRC eyes reform of stamp taxes and multiple dwellings

HMRC eyes reform of stamp taxes and multiple dwellings

Changes to reform multiple dwellings relief and how stamp duty land tax is calculated on purchases of mixed-use properties could be in the pipeline. A 12-week consultation closed last month, after HMRC sought feedback on proposals to crack down on abuse by restricting homeowners from obtaining the relief. Multiple dwellings relief is available when at … Continued

Comments Off on Two million people missed self-assessment deadline

Two million people missed self-assessment deadline

Two million people missed self-assessment deadline

More than two million people missed a self-assessment tax return deadline on 31 January 2022, according to HMRC.  The tax authority said more than 10.2 million returns were filed ahead of the original deadline, leaving 2.3 million still to file. Late-filers had until 28 February 2022 to file their 2020/21 tax returns online before being … Continued

Comments Off on HMRC waives penalties again for late self-assessment

HMRC waives penalties again for late self-assessment

HMRC waives penalties again for late self-assessment

Anyone who missed last month’s self-assessment deadline has until 28 February 2022 to file their tax returns online before being fined.  HMRC said last month that fines would not be enforced on taxpayers who missed the 2020/21 deadline at midnight on 31 January 2022. The tax authority said COVID-19 had piled added pressure on individuals … Continued

Comments Off on Report sheds more light on changes to R&D regime

Report sheds more light on changes to R&D regime

Report sheds more light on changes to R&D regime

More details have emerged on upcoming changes to the UK’s research and development (R&D) regime, which will take effect from April 2023.  The Treasury published a report on R&D following last year’s Autumn Budget, in which Chancellor Rishi Sunak announced several new measures. “If we want greater private-sector innovation, we need to make our R&D … Continued