Category: Tax

Almost 2,000 people who thought they’d reduced the values of their estates by making gifts have seen an inheritance tax break stripped away.  Inheritance tax is charged at 40% on individual estates worth more than £325,000, and this can double for married couples. Other allowances and exemptions are available to increase this threshold or taper … Continued

The 5% VAT repayment supplement is set to be replaced with the 0.5% repayment interest rate for accounting periods beginning on or after 1 April 2022.  VAT repayments are usually made within 30 days of HMRC receiving a business’s VAT return, but the tax authority can enquire into the VAT return before processing the repayment. … Continued

Four new measures affecting the construction industry scheme (CIS) were enacted from 6 April 2021 as HMRC cracks down on tackling abuse of the scheme. First, the tax authority can now amend the CIS deductions suffered and reclaimed on real-time information via the employment payment summary to an amount matching any evidence HMRC holds. If … Continued

A million businesses need to have digital links in place to submit VAT returns and comply with phase two of Making Tax Digital (MTD) for VAT. All VAT-registered firms have until their first VAT return period, starting on or after 1 April 2021, to put digital links in place. A digital link is an electronic … Continued

Investment in the UK’s manufacturing sector is poised to rise as a result of the capital allowances super-deduction.  The super-deduction enables companies that invest in qualifying new plant and machinery to benefit from a 130% first-year capital allowance. The policy kicked in on 1 April 2021 and allows companies to cut their tax bill by … Continued

The Treasury has frozen the UK’s VAT thresholds for a further two years in a bid to start repairing tattered public finances following COVID-19. Businesses with annual taxable turnover of more than £85,000 have to register for UK VAT and file digital VAT returns through compatible software. This VAT-registration threshold for 2021/22 remains at £85,000 … Continued

More help for the self-employed has been announced, with the final two income support grants available until the end of September 2021. The fourth taxable grant available through the self-employed income support scheme (SEISS) covers a three-month period from 1 February to 30 April 2021. As with two of the previous SEISS grants, the fourth … Continued

Around 1.8 million taxpayers missed the 2019/20 deadline for self-assessment on 31 January 2021, according to figures published by HMRC. The tax authority revealed 1,790,368 people failed to beat the midnight deadline, almost double last year’s total of 958,296. HMRC attributed the spike in the number of personal taxpayers missing this year’s midnight deadline – … Continued

A 0.5% increase to the personal allowance and higher-rate of income tax will be in place from 6 April 2021, according to the Treasury. Both thresholds will increase in line with the Consumer Prices Index (CPI) rate of inflation figure for September 2020, which was 0.5%. This means the personal allowance will increase from £12,500 … Continued

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 March 2021. Where there has been a change the previous rate is shown in brackets. Engine Size Petrol Diesel LPG 1400cc or less 10p     7p 1600cc or less   9p (8p)   1401cc to 2000cc 12p (11p) … Continued