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Tax Updates

Personal tax changes

Over the course of the year, the Chancellor has announced some key personal tax updates in both his Spring Budget and Autumn Budget. Many changes are due to take effect from 2022/23. Tax rates and allowances 2022/23 As announced in the Spring Budget earlier this year, the personal allowance of £12,570 and the basic rate

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Autumn Budget Announcement
Tax Updates

Autumn Budget Announcement

Chancellor Rishi Sunak delivered his Autumn Budget announcement in parliament today to outline government spending and plans for the future. In the Budget, Rishi Sunak set out measures to support the recovery of the UK economy following what has been a difficult year for many families and businesses. Although it was announced prior to the

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national living wage increase
Tax Updates

National living wage set to increase to £9.50 per hour

The Chancellor is set to announce an increase to the national living wage from £8.91 to £9.50 per hour. The national living wage is predicted to rise for workers aged 23 and over. Those below the age of 23 are paid the national minimum wage, which varies depending on age. The current rates are £4.62

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Tax Updates

Property landlords can now benefit from the super-deduction

The super-deduction was first announced in March 2021, allowing for businesses who make investments in plant and machinery, to receive a 130% allowance deduction. Property letting companies were not originally included in the scheme, meaning only occupiers could make a claim. However, amendments set out in the Finance Bill, mean that landlords now qualify for

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Coronavirus Updates

Stamp Duty Land Tax holiday phase out

Earlier this month, the Stamp Duty Land Tax (SDLT) holiday began to phase out. From 1 July 2021, the SDLT NIL rate was lowered from £500,000 to £250,000 on residential homes. The Stamp Duty Land Tax holiday will now only apply to residential homes costing £250,000 or less. The government introduced the holiday in June

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national insurance increase
Tax Updates

HM Treasury announces further tax consultations – how will you be affected?

Yesterday (23rd March)  the government published a series of consultations which outlined the plans to modernise Britain’s tax system, whilst rectifying flaws that cost £31bn every year. Here are some of the key announcements: Freelancers/self-employed to be taxed like employees The government will review the ‘pay-as-you-go’ system to start taxing self-employed workers in the same

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HMRC

Temporary tax easement for cycle-to-work schemes effected by coronavirus

In a written statement from the Financial Secretary of the Treasury to parliament, it was announced that a temporary tax easement will be introduced on the cycle-to-work schemes. The cycle-to-work schemes benefit from a tax exemption on bicycles and safety equipment provided to staff, on the provisions that they are used ‘mainly for qualifying journeys’

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register for self-assessment
HMRC

The process for claiming R&D relief will change from April 2021

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

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register for self-assessment
HMRC

Guidance update for businesses settling deferred VAT due to coronavirus

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

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HMRC

Extension to late loan charge spreading elections

The Low Income Tax Reform Group (LITRG) has welcomed the decision to extend the late loan charge spreading elections up to 31st December 2020. The original deadline was 30th September 2020, but was missed by a number of people. A Statement of Practice has been published by HMRC that outlines how they will accept late

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HMRC

Virtual Christmas party tax relief update

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

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register for self-assessment
HMRC

New changes to off-payroll working rules (IR35)

Off-payroll working rules (IR35) are set to change on 6th April 2021. From this date the rules will change regarding engaging with individuals through personal service companies. These changes will effect medium and large sized businesses, as well as all public authorities. Under the new changes, organisations will be responsible for determining whether the off-payroll

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register for self-assessment
HMRC

Government has proposed draft legislation for Plastic Packaging Tax

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

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 16/11/20

Coronavirus Job Support Extended by Chancellor On 5th November 2020, the Chancellor announced in the House of Commons that he would be extending the Furlough Scheme and the Self-Employed Income Support Scheme, following the news of a second national lockdown for England. The Furlough Scheme was set to end in December 2020 however, it has

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 30/10/20

Earlier this week the Chancellor, Rishi Sunak, made a statement to the House of Commons to offer support to businesses who are struggling as a result of further restrictions required, due to the coronavirus pandemic. In these challenging times the Chancellor has acknowledged that additional support is required in order to keep people in jobs

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Tax Updates

Tax Update 09/10

Keep up to date with the key announcements made this past week. Self-assessment time to pay limit increased to £30,000 HMRC has announced that the threshold for Self-assessment customers to spread the cost of the tax bills is being tripled from £10,000 to £30,000. The measure is introduced to help ease the financial burden resulting

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Tax Updates

Tax Update 02/10

Keep up to date with the key announcements made this past week. Top Slicing Relief on life insurance policy gains Following on from the Silver case (see below), changes to Top Slicing Relief were included in the Finance Act 2020. In the wake of this change, the Chartered Institute of Taxation have released a update

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making tax digital
Tax Updates

Tax Update 11/09

Keep up to date with the key announcements made this past week. Loan Charge deadline looms large The deadline for settling the highly controversial disguised remuneration loan charge is fast approaching. Following the findings of the report from Sir Amyas Morse, HMRC relented and narrowed the scope of the loan charge, removing a  large number

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Tax Updates

Tax Update 04/09

Keep up to date with the key announcements made this past week. Coronavirus Job Retention Scheme changes The latest September updates to the Coronavirus Job Retention Scheme have now taken effect. The updates will see the total contribution provided by the scheme fall from 80% of employees wages to 70% up to a cap of

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Tax Updates

This Weeks Tax Announcements 28/08

Keep up to date with the key announcements made this past week. HMRC announce new payment for people self-isolating in highest risk areas The Government has announced a new payment for people on low incomes in areas with high rates of COVID-19 who have been forced to self-isolate and can’t work from home. The scheme

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Tax Updates

Tax update 21/08

Keep up to date with the key announcements made this past week. HMRC has produced updated guidance on disguised remuneration settlement terms HMRC have updated a number of their guidance pages on disguised remuneration tax schemes. The changes relate to those made to the loan charge in the Finance Act 2020. The updates come as

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making tax digital
Tax Updates

Tax Update 7/8/2020

Tax Update 7/8/2020 Keep up to date with the key announcements made this past week. Job Retention Bonus Clarification for Employers HMRC have produced a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. The updated guidance provides clarifications as to when claims can be submitted, claims after the

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Tax Updates

Tax Update 31/7/2020

Keep up to date with the key announcements made this past week. Covid-19 support scheme overpayments HMRC has published two new compliance check factsheets, these factsheets cover assessments, interest and penalties where grants under the coronavirus support schemes have been over paid and fail to notify HMRC about the overpayment. CC/FS48 Job Retention Scheme –

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national living wage increase
Tax Updates

Tax Update 24/07/2020

Keep up to date with the key announcements made this past week. Finance Bill 2020 On the 22nd July the Finance Bill 2020 received royal accent and became the Finance Act 2020 Finance Bill 2021 A day earlier on the 21st July, HMRC published the draft legislation for the next finance bill. The draft provisions,

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Tax Updates

Tax Updates 10/07/2020

Keep up to date with the key announcements made this past week. Summer Economic Statement In the long awaited summer statement, the Chancellor Rishi Sunak announced a plethora of new measures. Included in these measures where the ‘Eat Out Help Out’ scheme. Customers with receive 50% off, up to £10 per head, on meals out

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Tax Updates

Tax Update – 03/07/20

Keep up to date with the key announcements made this past week. Charges for Payments Made to HMRC Using Debit Cards From 1st November 2020, when payments are made to HMRC using business credit and debit cards a fee will be charged. Previously, a fee was only payable to HMRC in relation to payments with

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Tax Updates

Weekly Review – Personal Tax Announcements 29/05/20

Personal Tax Update – 29/05/20 Keep up to date with the key announcements made this past week. Coronavirus (COVID-19): job retention scheme HMRC have provided further updates on the coronavirus job retention scheme (CJRS) for employees and employers to: explain that employers will be asked to detail separately the amounts for NIC, pension and wages

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Tax Updates

Weekly Review – Personal Tax Announcements 22/05/20

Personal Tax Update – 22/5/2020 In another information packed week, below is a summary of the key changes announced. Coronavirus (COVID-19): job retention scheme HMRC has updated the coronavirus job retention scheme (CJRS) guidance with several changes: the guidance note on ‘working out 80% of your employees’ wages to claim through the CJRS ’ has been

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Tax Updates

Weekly Review – Personal Tax Announcements 15/05/20

Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. Coronavirus (COVID-19): job retention scheme extended until 31 October As at the 12 May, 7.5m employees had been furloughed under the

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Tax Updates

Round up of Personal Tax Announcements 11/05/20

Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. HMRC Guidance on job retention scheme HMRC has updated its guidance  with various changes on the job retention scheme. A new section for

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Coronavirus Updates

Tax Reliefs for Working from Home

Given the Governments insistence for those who can work from home should do so, a large number of employed individuals will suddenly be working from home. Workers may be able to claim tax reliefs for the extra household costs associated with working from home. For instance for extra telephone bills, electricity and gas. HMRC accepts that

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Tax Updates

Vehicle Tax Rates for 2020/21

Background As part of last weeks budget the 2020/21 Vehicle Excise Duty (VED) rates were announced, these rates are set to take effect from 1st April 2020. Those who are looking to purchase a new car only have just over a week to utilise the old system. The way in which CO2 Emissions of a

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Tax Updates

Tax treatment of staff parties and gifts to employees

With the festive period on the horizon, employers often ask about the tax treatment of providing a staff Christmas party or giving gifts to employees. Here is a quick summary of the rules. Staff Parties What is exempt? There is a tax exemption for employee entertaining if the event meets the following criteria: an annual

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Tax Updates

Tax Returns 2018/19

Tax returns for the 2018/19 tax year are due for online submission by 31st January 2020. If you are newly self-employed or looking for someone new to look after your tax affairs and submit your return, STS Europe can help. Due to the constant changes to legislation, tax returns can become a complex process and

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Tax Updates

Personal Tax Update 2019/20

Now we have entered the new tax year on the 6 April 2019, here are the new changes that individuals need to be aware of for the 2019/2020 tax year. Income Personal Allowance The Personal Allowance has increased from £11,850 to £12,500. This means most people will get a £130 tax reduction compared to 2018/19.

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