Category: Tax

Comments Off on VAT-registration and deregistration thresholds frozen until 2024/25

VAT-registration and deregistration thresholds frozen until 2024/25

VAT-registration and deregistration thresholds frozen until 2024/25

The Treasury has frozen the UK’s VAT thresholds for a further two years in a bid to start repairing tattered public finances following COVID-19. Businesses with annual taxable turnover of more than £85,000 have to register for UK VAT and file digital VAT returns through compatible software. This VAT-registration threshold for 2021/22 remains at £85,000 … Continued

Comments Off on Treasury issues guidance on the final two self-employed grants

Treasury issues guidance on the final two self-employed grants

Treasury issues guidance on the final two self-employed grants

More help for the self-employed has been announced, with the final two income support grants available until the end of September 2021. The fourth taxable grant available through the self-employed income support scheme (SEISS) covers a three-month period from 1 February to 30 April 2021. As with two of the previous SEISS grants, the fourth … Continued

Comments Off on Record number miss self-assessment filing deadline due to COVID-19

Record number miss self-assessment filing deadline due to COVID-19

Record number miss self-assessment filing deadline due to COVID-19

Around 1.8 million taxpayers missed the 2019/20 deadline for self-assessment on 31 January 2021, according to figures published by HMRC. The tax authority revealed 1,790,368 people failed to beat the midnight deadline, almost double last year’s total of 958,296. HMRC attributed the spike in the number of personal taxpayers missing this year’s midnight deadline – … Continued

Comments Off on Personal allowance and higher-rate threshold to increase 0.5%

Personal allowance and higher-rate threshold to increase 0.5%

Personal allowance and higher-rate threshold to increase 0.5%

A 0.5% increase to the personal allowance and higher-rate of income tax will be in place from 6 April 2021, according to the Treasury. Both thresholds will increase in line with the Consumer Prices Index (CPI) rate of inflation figure for September 2020, which was 0.5%. This means the personal allowance will increase from £12,500 … Continued

Comments Off on Advisory Fuel Rate for Company Cars from 1 March 2021

Advisory Fuel Rate for Company Cars from 1 March 2021

Advisory Fuel Rate for Company Cars from 1 March 2021

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 March 2021. Where there has been a change the previous rate is shown in brackets. Engine Size Petrol Diesel LPG 1400cc or less 10p     7p 1600cc or less   9p (8p)   1401cc to 2000cc 12p (11p) … Continued

Comments Off on HMRC issues last reminder for 2019/20 personal tax returns

HMRC issues last reminder for 2019/20 personal tax returns

HMRC issues last reminder for 2019/20 personal tax returns

HMRC is reminding taxpayers that the deadline to submit 2019/20 personal tax returns through self-assessment is on or before midnight on 31 January 2021. Last year, a record-breaking 11.1m taxpayers complied with filing their personal tax return for 2018/19 on time, while around 8% missed the deadline altogether. More than 700,000 people left it to … Continued

Comments Off on Self-employed fear tax returns may affect fourth SEISS claim

Self-employed fear tax returns may affect fourth SEISS claim

Self-employed fear tax returns may affect fourth SEISS claim

Some self-employed workers fear submitting their 2019/20 tax return early might affect their ability to claim a fourth taxable grant from the Government.  The deadline to submit tax returns for 2019/20 through self-assessment is on or before midnight on 31 January 2021, with around 10.7 million returns sent in last year. Last month, an extension … Continued

Comments Off on Government body urges capital gains tax overhaul

Government body urges capital gains tax overhaul

Government body urges capital gains tax overhaul

Current capital gains tax rates are too complex and should be aligned with income tax rates, according to the Office for Tax Simplification (OTS).  Capital gains tax in the UK is charged at 10% and 20% for most taxable assets, or 18% and 28% for residential property that is not a main home. Income tax … Continued

Comments Off on Potential changes to capital gains tax ahead – a Heads Up!

Potential changes to capital gains tax ahead – a Heads Up!

Potential changes to capital gains tax ahead – a Heads Up!

The Office of Tax Simplification’s Report last week on capital gains tax made a number of suggestions to the Chancellor which if introduced would fundamentally change the capital gains tax rules in the UK.  This Report and the proposals made therein clearly point to the intention to align the capital gains tax rates with income … Continued

Comments Off on Sunak hints at spring tax hikes to ‘balance the books’

Sunak hints at spring tax hikes to ‘balance the books’

Sunak hints at spring tax hikes to ‘balance the books’

Chancellor Rishi Sunak has promised to “balance the books” in a bid to plug a £208 billion hole in the UK’s public finances caused by COVID-19. In September, Sunak postponed Autumn Budget 2020 and last month the Chancellor suggested tax hikes could be around the corner next spring. Figures published by the Office for National … Continued