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The rates for national insurance contributions (NIC) increased by 1.25 percentage points for everyone on 6 April 2022. From 6 July the NIC starting threshold will rise to £12,570 per year (£1,048 per month) for employees. This means that some… more
The rates for national insurance contributions (NIC) increased by 1.25 percentage points for everyone on 6 April 2022. From 6 July the NIC starting threshold will rise to £12,570 per year (£1,048 per month) for employees. This means that some lower paid employees will have more Class 1 NIC deducted from their pay from April to June 2022 but may pay no NIC from July 2022 onwards. Employers are not so fortunate as the threshold from which they pay Class 1 NIC on employees' salaries remains at £9,100 per year (£758 per month) for most workers. Employees who are apprenticed… more
The fuel crisis last September has encouraged many people to consider buying an electric car. Drivers of company-owned electric vehicles will find it particularly rewarding as the taxable benefit for using an electric company car is currently just 1% of… more
The fuel crisis last September has encouraged many people to consider buying an electric car. Drivers of company-owned electric vehicles will find it particularly rewarding as the taxable benefit for using an electric company car is currently just 1% of its list price and there is zero taxable benefit for using an electric company van. The taxable benefit for electric cars is due to double from 1% to 2% of list price on 6 April 2022 but then it will be frozen at that level until at least 6 April 2025. If the company pays for the electricity to power… more
The hospitality and tourism sector has been enjoying a reduced rate of VAT (5%) since 15 July 2020. From 1 October 2021 the 5% VAT rate will increase to 12.5% and on 1 April 2022 it will revert to the… more
The hospitality and tourism sector has been enjoying a reduced rate of VAT (5%) since 15 July 2020. From 1 October 2021 the 5% VAT rate will increase to 12.5% and on 1 April 2022 it will revert to the normal standard rate of 20%. This rate applies to most supplies made by hotels, tourist attractions, members' clubs and most events venues. It also applies to the food and drink served in those premises and hot takeaway food and non-alcoholic drinks. From 1 October 2021 the 5% VAT rate will increase to 12.5% and on 1 April 2022 it will… more
Most VAT registered businesses were required to comply with the making tax digital (MTD) regulations for VAT periods beginning on or after 1 April 2019. HMRC has not been imposing penalties for non-compliance with those rules, preferring to nudge businesses… more
Most VAT registered businesses were required to comply with the making tax digital (MTD) regulations for VAT periods beginning on or after 1 April 2019. HMRC has not been imposing penalties for non-compliance with those rules, preferring to nudge businesses with letters and advertising campaigns instead. However HMRC is starting to take a tougher approach with traders who have not signed up to MTD. Around 800 businesses have been told that they can file their current VAT return using the old HMRC portal (online form) but from 8 July 2021 they will have to file using MTD software as the… more
