News

Comments Off on Extension for temporary £1m annual investment allowance

Extension for temporary £1m annual investment allowance

Extension for temporary £1m annual investment allowance

The temporary increase to the annual investment allowance has been extended by 15 months, just eight weeks before it was due to expire.  The allowance offers 100% tax relief on qualifying plant and machinery up to a specified annual limit. In 2019, the allowance was increased from £200,000 to £1 million – a rise that … Continued

Comments Off on Business rates burden eases for retailers and hospitality firms

Business rates burden eases for retailers and hospitality firms

Business rates burden eases for retailers and hospitality firms

Thousands of retail, hospitality and leisure firms in England will receive a short-term business rates reprieve in 2022/23, following Autumn Budget 2021. Chancellor Rishi Sunak announced a temporary 50% cut in their business rates, up to a maximum of £110,000 per business. Up to 400,000 businesses in these sectors – including pubs, music venues, cinemas, … Continued

Comments Off on Hospitality and tourism VAT rate increases to 12.5%

Hospitality and tourism VAT rate increases to 12.5%

Hospitality and tourism VAT rate increases to 12.5%

VAT for pubs, restaurants, holiday accommodation and entry to certain attractions increased from 5% to 12.5% last month, following the end of a tax break. A temporary cut first introduced on 8 July 2020 saw the standard rate of VAT for struggling businesses in the hospitality and tourism sectors fall from 20% to 5%. That … Continued

Comments Off on Salary sacrifice could ‘dampen increased NICs costs’

Salary sacrifice could ‘dampen increased NICs costs’

Salary sacrifice could ‘dampen increased NICs costs’

Salary-sacrifice arrangements could help employees negate the National Insurance contributions (NICs) rise during 2022/23.  NICs will rise by 1.25% for employees, employers and the self-employed from April 2022 to fund the Government’s        new health and social care levy. In some scenarios, employees and employers can get around this by striking a salary … Continued

Comments Off on National Insurance and dividends tax rates to rise 1.25% in 2022/23

National Insurance and dividends tax rates to rise 1.25% in 2022/23

National Insurance and dividends tax rates to rise 1.25% in 2022/23

National Insurance contributions (NICs) and the three dividend tax rates will all increase 1.25% from April 2022 to pay for the social care system in England.  This social care package will be funded through a new UK-wide health and social care levy, which is expected to raise around £12 billion a year. The levy will … Continued

Comments Off on The rise of electric vehicles could create £30bn tax hole

The rise of electric vehicles could create £30bn tax hole

The rise of electric vehicles could create £30bn tax hole

The Government is being urged to introduce a new road-pricing system, because the increasing popularity of electric vehicles risks leaving a £30 billion hole in public finances each year.  Research submitted by the Tony Blair Institute for Global Change called for a new system, with options including charges based on emissions, vehicle weight and traffic … Continued

Comments Off on Government launches new trust registration service

Government launches new trust registration service

Government launches new trust registration service

Millions of trustees need to register details of their trusts before next autumn, following the launch of a new trust registration service.  The service was originally announced in draft form in 2017, at a time when it would only have applied to taxable-relevant trusts. Since then it has been expanded to include all UK-resident express … Continued

Comments Off on Curtain comes down on stamp duty land tax holiday

Curtain comes down on stamp duty land tax holiday

Curtain comes down on stamp duty land tax holiday

The stamp duty land tax holiday in England and Northern Ireland has come to an end, more than 14 months after it first came into effect.  The tax break saw most buyers who purchased residential homes for £500,000 or less pay no stamp duty land tax until 30 June 2021, although landlords still had to … Continued

Comments Off on Capital gains tax receipts climb 3% to record-high

Capital gains tax receipts climb 3% to record-high

Capital gains tax receipts climb 3% to record-high

HMRC collected a record of £9.9 billion from capital gains tax receipts in 2019/20, according to official statistics published last month.  The tax authority said this was 3% up on the previous tax year’s receipts, but the number of taxpayers paying tax on their gains fell 6% to around 265,000. Most of the liabilities collected … Continued

Comments Off on 1 in 5 UK employers consider making redundancies

1 in 5 UK employers consider making redundancies

1 in 5 UK employers consider making redundancies

A minority of UK employers could be about to cut jobs, due to the withdrawal of the furlough scheme and rising costs. The scheme, which has protected around 11.6 million jobs since the start of the pandemic, will close on 30 September 2021. The Government currently pays 60% of a furloughed worker’s wages and employers … Continued