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AUTUMN STATEMENT – November 2022

Income Tax

The additional rate threshold is being reduced to £125,140 from 6 April 2023. The personal allowance is reduced by £1 for every £2 earned over £100,000 and is fully withdrawn once an individual’s income reaches £125,140. The additional 45% main rate and 39.35% dividend rates of tax will apply to income above this level. 

Dividends allowance

This being halved from its current £2,000 to £1,000 from 6 April 2023. It will be halved again to £500 from 6 April 2024.

Capital Gain Tax.

New HMRC one-stop online shop on tax reliefs

New HMRC one-stop online shop provides taxpayers with tax relief information

HMRC has launched a new one-stop online shop designed to provide taxpayers with information on the tax reliefs and financial help available from HMRC.

In a new section of the GOV.UK website, HMRC has listed financial support available to ensure individuals are not missing out. There is guidance on relief for childcare and work-related expenses, as well as information about savings and getting help if you cannot pay your tax bill.

COVID 19 - THE TAX IMPACT OF WORKING FROM HOME

Employees’ homeworking costs

The legislation specifically allows payments made by employers to employees to cover homeworker’s additional household expenses to be tax-free in certain circumstances.

Self-Assessment Penalties 2018-19

Based on recent years HMRC will potentially issue at least 1 million late filing penalties..

Late filing penalties are as follows:

THE MAKING TAX DIGITAL TIMETABLE

From 1 April 2019, Making TAx Digital (MTD) finally beging to come into force.

Under the MTD rules most businesses will be required to digitally record tax-relevant data and to use MTD-compliant software to transfer the required information directly to HMRC’s systems via an application programming interface (API).

MTD for business is being introduced tax by tax, not by business size or type.

Tax rebate

Check tax rebate eligibility

Anyone living in a property in council tax bands A to D is eligible for a £150 tax rebate as part of a scheme to help with the cost of living crisis. Around 90% of eligible households have received this by direct debit, but what should you do if you haven’t?

Working from home allowance (£6 per week or £26 per month)

Working from home allowance (£6 per week or £26 per month)

Please note, If you previously claimed tax relief when you worked from home because of coronavirus (COVID-19), you might no longer be eligible.

Who can claim tax relief

You can claim tax relief if you have to work from home, for example because:

  • your job requires you to live far away from your office
  • your employer does not have an office

Who cannot claim tax relief

Making Tax Digital - Update [Nov. 2021]

Started in April 2019 with Making Tax Digital (MTD) VAT for businesses with taxable turnover above the VAT threshold. MTD VAT is extended to all businesses from April 2022 and MTD income tax self assessment (MTD ITSA) will start in April 2024.

BUDGET 27th OCTOBER 2021 - highlights

  • 30-day reporting and payment deadline for CGT on UK residential property extended to 60 days for transactions completing on or after 27 October 2021
  • 100% Annual Investment Allowance continues at £1m until 31 March 2023, instead of reducing to £200,000 on 1 January 2022
  • Confirmation of 1.25% increases in National Insurance Contributions (NIC) and dividend tax rates from 6 April 2022, as well as increases in most NIC thresholds
  • Residential Property Developer Tax to be introduced from 1 April 2022 at 4% on profits over £25 million

COVID 19 – Winter Economy Plan [08th October 2020]

Coronavirus Job Retention Scheme CJRS – UPDATE

The existing furlough scheme, comes to an end on 31 October. The Winter Economy Plan the government announced will be introducing a new Job Support Scheme from 1 November 2020.

For employers to participate in the scheme:

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