VAT – Input tax that cannot be reclaimed A VAT-registered business can reclaim the VAT that it incurs on business expenses. Most businesses expect to be able to reclaim all the VAT that they incur on expenditure. There are, however, a number of exceptions to this general rule. The main types of VAT that cannot … Read more
The tax gap for the 2020 to 2021 tax year is 5.1%. Statistics published on the 23 June 2022 by HM Revenue and Customs (HMRC) reveal the estimated tax gap for the 2020 to 2021 tax year is 5.1% – the second lowest recorded percentage – and is unchanged from the previous year. The annual Measuring … Read more
First Plastic Packaging Tax returns due this month Businesses that are now liable for the Plastic Packaging Tax (PPT) will need to file their first returns this month. The UK’s PPT took effect from 1 April 2022 and the first return will cover the period from the date the business became liable to register for … Read more
Paper £20 and £50 banknotes to be withdrawn from circulation. The Bank of England (BoE) has reminded the public that it will be withdrawing the legal tender status of paper £20 and £50 notes after 30 September 2022. According to the Bank, there are still over £6 billion worth of paper £20 notes and over … Read more
The deadline for reporting any P11D Expenses and Benefits in Kind is 6 July 2022. These should be filed electronically to HMRC using either commercial payroll software or HMRC’s PAYE Online service. It is imperative these form are received on time as they influence how much employees are taxed. Penalties will be issued for P11D, … Read more
Employees who have been claiming home working tax relief during the pandemic should review their tax codes to check whether HMRC has included the relief in their notice of coding During the pandemic HMRC allowed anyone working at home due to the pandemic lockdowns to apply for the tax relief for the whole year regardless … Read more
About 2.1 million tax credits customers will begin to receive their annual renewal packs from HMRC. The packs will be sent between 25 April and 27 May, and customers have until 31 July to check their details are correct and update HMRC if there has been a change in their circumstances. Tax credits help working … Read more
Less than one week to go before MTD (Making Tax Digital) for VAT is mandatory. As of 1st April 2022 VAT registered businesses will need to submit VAT returns via MTD software. It is said that this will reduce common mistakes and save time for taxpayers whilst being a key part of the digitalisation of … Read more
The Chancellor of the Exchequer has announced the Spring Statement, in this he said the Government had already taken significant steps to help with the cost of living. Including a cut to the Universal Credit taper rate and increase to work allowances and the £9 billion package to help households with rising energy bills. The … Read more
Although it is possible to make a deferment of National Insurance Contributions the law states you must meet all NIC liabilities as an employee in all employments. If you have more than one job and expect to pay primary Class 1 NIC’s of at least: £967 per week (£4,189 per month) throughout the whole tax … Read more
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