The 2022 Paper Tax Return
The 2021/22 tax year ended on 5th April 2022, tax returns for that year can now be submitted. It is highly recommended that returns are completed as early as possible in the year, that way nasty surprises are avoided. By leaving things later in the year, there is less time before the tax due for […]
National Insurance changes from July 2022
In the recent Spring Statement, several changes to National Insurance were announced. These are not straightforward, and this is further compounded by only applying part way through the new tax year – from 6th July 2022 onwards. The reason why the changes are not introduced from 6th April 2022 is that with short notice, payroll […]
Making Tax Digital postponed until 2024
HMRC had been planning to start digital tax from 6th April 2023, however that has now been postponed until 6th April 2024. There have also been some further details of digital tax record-keeping. You do not have to input your income and expenses straightaway if you do not wish to. There were worries that people […]
National Insurance increase from April 2022
From April 2022 the rate of National Insurance is to increase by 1.25%. This will apply to both employees(Class 1) and the self-employed(Class 4.) The increase won’t initially affect those above state pension age. However from April 2023 the increase is renamed as a separate 1.25% ‘Health and Social Care Levy’ and the original current […]
Dividend Tax Increase from April 2022
The rate of tax on dividend income is to increase from April 2022. At present, there is also a £2,000 annual tax-free allowance for dividend income. There have been no changes announced to this annual limit, however the rate of tax that is charged on dividends above the annual limit is to increase: Income Band […]
SEISS Grants and accounting dates
People are now starting to complete their 2021 tax returns, which cover the tax year 6th April 2020 to 5th April 2021. If your accounting year ends on 5th April 2021 then there are no issues – any SEISS grants that you have received in the tax year will align with your accounting year. However, […]
SA316 – HMRC Notice to File a 2021 Tax Return
HMRC has started issuing the 2021 notices to complete a tax return. These can either be received through your online personal tax account, as above, or through the post. The postal form is called a SA316 form. The notices relate to the 2020/21 tax return year, which covers the period 6th April 2020 to 5th […]
HMRC 2021 Paper Tax Return Form
The new paper tax return form has been released for 2020/21 by HMRC The 2021 tax year covers the period 6th April 2020 to 5th April 2021. If you are submitting a paper tax form, this has to be submitted to HMRC before 31st October 2021 in order to avoid an automatic £100 fine being […]
SEISS grants 4 and 5 announced
It was announced in the Budget that there would be two SEISS grants: Fourth Grant – covering three months at 80% of average trading profits. Paid out in a single instalment and capped at £7,500. You must be a self-employed individual or a member of a partnership. The 2019/20 tax return is referred to for […]
Tax Allowances Frozen to 2025/26
In the Budget it was announced that, rather than increase in line with inflation each year, several personal tax allowances are to be frozen. The below allowances will remain at the 2021/22 levels through until 2025/26: Personal Allowance – £12,570 Basic Rate Band – £37,700 = Higher Rate Threshold £50,270 Additional Rate Threshold – £150,000 […]
HMRC 31st January 2021 Return Deadline Extended
The normal deadline for submitting an online tax return is the 31st January after the year end. For 2020 tax returns the deadline would usually have been 31st January 2021. It has been announced that late return penalties will not be issued on 31st January this year… as long as any outstanding returns are filed […]
Self-serve HMRC time to pay for 2021
HMRC had already allowed people to defer payment of their 31st July 2020 second payment on account until 31st January 2021. Now, that is being extended through a new time to pay arrangement that will enable people to set up their own online payment plan to cover any or all of the below liabilities: 1) […]