For VAT periods starting on or after 1 January 2023, HMRC is replacing the default surcharge with separate penalties for late returns and late payment of VAT. At the same time, HMRC is introducing a new approach to charging interest on late-paid VAT. The new points-based system for late submissions is designed to be more lenient for the occasional […]
1/12/22 Corporation tax for year to 28/02/2022 unless quarterly instalments apply. 19/12/22 PAYE & NIC deductions, and CIS return and tax, for month to 5/12/22 (due 22/12 if you pay electronically). 30/12/22 Deadline for filing 2021/22 tax return online in order to request that HMRC collect outstanding tax via the 2022/23 PAYE code. […]
One of the few changes announced on 23 September that has not been reversed concerns Stamp Duty Land Tax (SDLT) in England and Northern Ireland. The starting threshold was increased from £125,000 to £250,000 (and, for First Time Buyers, from £300,000 to £425,000) from 23 September 2022. However, it has now been announced that these […]
The Chancellor has again expressed concerns about the alleged abuse of Research & Development (R&D) tax reliefs. Alongside plans to merge two existing schemes in future, he announced that, from 1 April 2023: The Research and Development Expenditure Credit (RDEC) available to non-SME companies would be increased from 13% to 20%. For SME companies, the […]
For those provided with an electronic or ultra-low emission company car (emitting less than 75g of CO2 per kilometre), there will be annual increases in the benefit-in-kind percentages, and therefore the taxes paid by both employees and employers, from the 2025/26 tax year. For all other company car users, there will be a 1 percentage […]
Many were predicting that the rates of Capital Gains Tax (CGT) paid by individuals would increase, possibly to align with the rates of income tax. Instead, the Chancellor has announced that the current £12,300 annual tax-free CGT exemption (or allowance) will be reduced to just £6,000 in 2023/24 and only £3,000 in 2024/25. This change […]
For all individuals, the first £2,000 of dividend income is taxed at 0%. The government have now decided that this ‘dividend allowance’ of £2,000 will be reduced to £1,000 in the 2023/24 tax year and then again to just £500 in the 2024/25 tax year. It should be remembered that the income tax rates applied […]
Employers will be relieved that there are no more changes to NIC rates and bandings or therefore consequential payroll software changes! Like the main income tax bandings, NIC thresholds are now also frozen until 5 April 2028. This means that employers’ NIC will continue to apply at 13.8% to earnings in excess of £9,100 a year […]
The income level at which point the ‘additional’ 45% rate of income tax starts to apply will be reduced from £150,000 to £125,140* from 6 April 2023. The new £125,140 threshold ties in with the £12,570 personal allowance being gradually withdrawn for those with income in excess of £100,000. For these individuals, once their income […]
It had already been announced that the income tax personal allowance (£12,570) and higher (40%) rate threshold (£50,270*) would be frozen until 5 April 2026, instead of increasing each year in line with inflation. The Chancellor has now announced that these freezes will continue until 5 April 2028. As earnings increase, this will result in more […]
