News

Comments Off on MTD for VAT rolls out to all VAT-registered businesses

MTD for VAT rolls out to all VAT-registered businesses

MTD for VAT rolls out to all VAT-registered businesses

All VAT-registered businesses must comply with Making Tax Digital (MTD) rules, regardless of how much they make each year. Kicking in from 1 April 2022, the changes mean all VAT-registered businesses must compile and submit VAT returns using software that connects to HMRC’s systems. They can do that either through a bridging tool or by … 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 New law to resolve Covid rent debt

New law to resolve Covid rent debt

New law to resolve Covid rent debt

The Government has set up an arbitration system to help resolve outstanding commercial rent debts as the general moratorium on commercial eviction ends. From 25 March, a legally binding arbitration process is available for eligible landlords and tenants who have not yet reached an agreement. The Government hopes this will resolve disputes about pandemic-related rent … 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 Government launches online sales tax public consultation

Government launches online sales tax public consultation

Government launches online sales tax public consultation

The Government has opened a public consultation into a new online sales tax (OST) to “rebalance” the taxation of online and in-store retail businesses. The Treasury published its consultation on 25 February 2022, seeking answers from stakeholders on 40 questions about how an OTS should work. If implemented, the Government would use an OST to … 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 Economic forecasts dampen for 2022

Economic forecasts dampen for 2022

Economic forecasts dampen for 2022

The British Chambers of Commerce (BCC) has revised its forecast for GDP growth in 2022, which is now expected to grow at half the rate as it did in 2021. GDP is now expected to grow in 2022 by 3.6%, revised down from 4.2% and compared to 7.5% growth in 2021. The downgrade largely reflects … 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 ‘Ditch NICs increase to free up funds for apprentices’

‘Ditch NICs increase to free up funds for apprentices’

‘Ditch NICs increase to free up funds for apprentices’

The Treasury is being urged to consider a late U-turn on introducing the National Insurance contributions (NICs) increase next month to boost apprenticeships.  All NICs rates will increase by 1.25% from April 2022 to help fund the development of the new health-and-social-care levy, which kicks in from April 2023. The Federation of Small Businesses (FSB) … 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