HMRC has confirmed that four million out of twelve point two million taxpayers have yet to file their 2020-21 self-assessment tax returns. Which means that an equivalent proportion of taxes due 31 January 2022 will remain unpaid; at least for the foreseeable future. We have reported on our blog earlier in January 2022, that HMRC […]

In between the other political distractions of the last few weeks, England has returned to the COVID measures set out in Plan A. This means: The government is no longer asking people to work from home if they can. People should now talk to their employers to agree arrangements to return to the office. Face […]

Paying someone to act as your nanny, housekeeper or gardener may result in you being considered an employer. In turn, this may involve you needing to meet statutory employment rights and deducting any tax or National Insurance contributions from their wages. These obligations will not apply if: They are self-employed, or Paid through an agency. […]

A reminder that business in the hospitality, leisure and accommodation sectors in England may be due support funding from their local authority. Recently, local authorities were reminded by government that they needed to process grants quickly. Extracts from a letter sent to authorities is reproduced below: “As you will know, the spread of the Omicron […]

We are often asked why a self-employed person is paying so much tax when their drawings from their self-employed business are minimal. The reason for this is that sole traders and partners (individuals) pay tax on the profits they earn not on the amount of cash they withdraw from their business. For example, consider Sue, […]

The following definitions set out how property income is calculated and taxed: Rental income – includes rents, amounts received to cover use of furniture, cleaning of communal areas, hot water, heating and repairs to property. Allowable expenses – any expense that you have laid out “wholly and exclusively” for the purposes of renting out a […]

HMRC is responding to the pressures we all feel as the new COVID-19 variant, Omicron, makes normal life difficult once more. The offer by HMRC is generous. Basically, they have announced that taxpayers who have still not filed their self-assessment tax returns for 2020-21, will be granted an extra month to file online without triggering […]

Businesses are reminded to take steps to prepare for Making Tax Digital for Value Added Tax (VAT) before it becomes mandatory for all VAT-registered businesses from 1 April this year. Making Tax Digital is designed to help businesses eliminate common errors and save time managing their tax affairs. Making Tax Digital for VAT is part […]

HMRC have issued the following guidance to taxpayers who may have received COVID-19 grants during the 2020-21 tax year. “If you claimed Self-Employment Income Support Scheme (SEISS) or received Coronavirus Job Retention Scheme grants, you’ll need to include details of all the taxable coronavirus support scheme payments you received during the 2020 to 2021 tax […]

£100,000 – Loss of income tax personal allowance Your income tax personal allowance – £12,570 for 2021-22 – will be reduced by £1 for every £2 your adjusted net income exceeds £100,000. If your projected earnings for the current tax year are expected to be in excess of £100,000, perhaps for the first time, you […]