The Prime Minister has announced a 1.25% National Insurance increase to fund the health and social care system, after it has been hit hard by Covid over the past 18 months. The National Insurance increase will take effect from April 2022. Employees, companies, and freelancers will pay the new 1.25% tax, which will be
Following the Chancellor’s Budget announcement earlier this month, HM Treasury will reveal documentation on future tax policies on 23rd March. HM Treasury are expected to announce information regarding technical administration of the tax system, such as moving online. However, Rishi Sunak could potentially announce a number of possible tax changes. In the Budget, Chancellor Rishi
This years highly anticipated Budget will be watched closely by many as Chancellor Rishi Sunak sets out the UK’s economic recovery, following the coronavirus pandemic. The Chancellor will outline the state of the economy and the government’s plan to either raise or lower taxes. The Budget will also forecast how the UK economy could perform
Ahead of the March Budget, rumours have been circulating regarding what tax changes Chancellor Rishi Sunak plans to make. Reportedly, the Treasury may be planning to freeze personal income tax allowances for the two lower tax thresholds. This would mean that the thresholds £12,500 and £50,000 would not rise in line with inflation. Currently, basic
Supermarket retail giants have asked the Chancellor to introduce a sales tax for online competitors, to create a level playing field. They have said that the current tax system puts retailers with large estates at a disadvantage compared to online retailers. Property based business rates have been temporarily paused since the start of the coronavirus
With less than a month to go until the Chancellor announces his March Budget, Rishi Sunak is reportedly considering a number of tax rises. The Chancellor is now facing the task of repaying the £400billion deficit, caused by the coronavirus pandemic. Rumours have been circulating in parliament regarding how the Chancellor plans to deal with
Five international tax enforcement leaders known as the Joint Chiefs of Global Tax Enforcement or J5, have formed an alliance to combat tax evasion. The J5 includes, the UK, the US, Australia, Canada and the Netherlands. The leaders meet on a yearly basis to collaborate on tackling common tax evasion issues. This year the meeting
Under the pension freedom rules, introduced in 2015, anyone over the age of 55 is able to withdraw as much cash as they like, whenever they like, from their retirement savings. In the last three months of 2020, nearly £26million was reclaimed from HMRC in pension savings however, many savers are unaware that they may
Chancellor Rishi Sunak is under pressure from MP’s to end stamp duty and council tax. Under the proposal, homeowners would no longer pay council tax and stamp duty would be abolished for primary residences. The proposal is expected to benefit 19 million households. Instead of paying council tax, households would pay a proportional property tax
Following the result of over 100,000 signatures on an online petition to extend the stamp duty land tax holiday, parliament announced that MP’s will debate extending the holiday on 1st February 2021. The stamp duty land tax holiday was introduced last year to try and keep the housing market stable during the coronavirus pandemic. The
Post-Brexit rules came into force on 1st January 2021, despite the Free Trade Agreement with the EU, the UK is now facing new taxes and charges on goods sent between the EU and the UK. Many UK consumers have been faced with unexpected charges, in order to receive their goods. As the UK is no
Many are facing higher tax bills this year as deferred bills from last year are beginning to catch up, this has resulted in taxpayers accumulating £4bn in debt with HMRC. The coronavirus pandemic has had a lasting effect on the UK economy, with many people out of work and businesses being forced to temporarily close.
HMRC have increased the number of investigations into families who claim child benefits. Introduced in 2013, the High Income Child Benefit Charge, requires higher earners, of more than £50,000, to pay back a percentage of their child support payments. For those who earn over £60,000, the entire amount must be repaid. This is based on
In recent months, investors in the cryptocurrency Bitcoin, have made fortunes from their dealings. One crypto winner, who invested in Bitcoin over the past 3 years, now has £150,000 worth of the cryptocurrency. The plan is to cash in on the winnings, but are people aware of the tax implications they could face? For tax
HMRC are investigating large companies who they believe could be wrongly paying less UK tax, due to their cross-border financial arrangements. HMRC have started a criminal investigation into businesses that allocate their profits between different countries, in connection with transfer pricing. Transfer pricing can legally allow for connected companies to minimise their tax liabilities by
Professional bodies, including The Chartered Institute of Taxation, are urging trustees and agents to update their details on the Trust Registration Service or make a ‘no change’ declaration by 31st January 2021. HMRC have provided clarification for completing the 20.1 tick box question on the Trust and Estate return (SA900). Trustees and agents should ensure
Off-payroll working rules (IR35) will be changing on 6th April 2021. From this date the rules regarding how companies engage with individuals through personal service companies, will be affected. See our article on ‘New changes to off-payroll working rules (IR35)’ for further details on the changes. Companies should be aware of the changes to the
The new Income Tax exemption came into effect from 8th December 2020 in relation to employers providing their employees with a coronavirus antigen test. This new temporary exemption will ensure that employees who are given a relevant coronavirus antigen test, will not be liable to an Income Tax benefit in kind charge. A benefit in
From 1st April 2021, HMRC have confirmed that all companies will be required to complete a supplementary page when claiming for the following: Small and medium-sized enterprises (SME) Research and Development Relief SME Payable Tax Credit SME Research and Development Expenditure Credit The supplementary page (CT600L) will need to be completed when submitting the corporation
Corporation tax returns are due 12 months after the accounting period ends. For many companies the accounting period ends on 31st December therefore, 31st December 2020 will be the filing deadline for accounting periods ending on 31st December 2019. HMRC are urging businesses to file their corporation tax returns by the relevant deadline. Due to
HMRC has updated its guidance on the information published for employers who make a claim under the Coronavirus Job Retention Scheme (CJRS) from 1st December 2020. HMRC is providing this information in the hope that it will deter fraudulent claims. The new guidance includes the information that HMRC will publish on employers who claim under
HMRC has updated its guidance for VAT-registered businesses who deferred their VAT between 20th March and 30th June 2020, due to the Covid-19 pandemic. Businesses who still have payments to make can: Pay the full deferred VAT amount on or before 31st March 2021 Opt into the new payment scheme that launches in 2021 Contact
HMRC have been pushed to acknowledge that ‘normal’ Christmas parties are unlikely to go ahead this year. As some employers are opting to throw a virtual Christmas party, clarification has been needed as to whether the same rules apply, regarding tax relief. It has now been confirmed by HMRC, that employers will be able to
Are ‘Virtual’ Christmas parties eligible for tax relief? The Association of Taxation Technicians (ATT) is asking HMRC to clarify whether virtual Christmas parties fall under the tax relief this year. As a result of the coronavirus pandemic, Christmas parties are set to be a little different this year as usual work functions will not be
The government has proposed a draft legislation to introduce a Plastic Packaging Tax, which would take effect from April 2022. The aim of the tax is to provide businesses with an economic incentive to start using recycled material when manufacturing plastic packaging. The tax will increase levels of recycling and plastic waste collection by increasing
Chancellor Rishi Sunak has been looking for ways to cover the costs of the devastating financial impact caused by the coronavirus pandemic. The UK’s economy has been hit hard during the pandemic and the government are now looking for ways to gain back funds. Rishi Sunak has reassured the nation that there will not be
Businesses can claim back employees Statutory Sick Pay if they have been absent due to the coronavirus. A claim can be made for up to two weeks of an employee’s statutory sick pay if they have been absent for reasons relating to the coronavirus. Businesses can only claim if the following criteria are met: Employees
The government’s working from home tax relief has been reviewed due to the coronavirus pandemic. With more people being required to work from home due to local restrictions and national lockdowns, HMRC have updated their system to allow people to claim the entire tax year, regardless of the period of time spent working at home.
The government introduced the Eat Out to Help Out scheme in August which offered 50% discount of up to £10 per person. The aim of the scheme was to boost the economy after the national lockdown by allowing businesses in the hospitality sector to offer discounted meals on Mondays, Tuesdays and Wednesdays. Whilst this scheme
