Monthly Archives: December 2021

Be prepared for change in 2022

We are all ‘up to here’ in accommodating COVID-19, and depending on our tolerance levels, this is likely to continue into 2022.

There are remote signs that a combination of vaccines and/or anti-viral drugs will eventually arrest the spread of this infection, but we will have to face disruption in economic activity next year and the...

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Plug-in vehicle grants reduced

From 15 December 2021, the government is making the following reductions to the grants made available for certain electric vehicle purchases.

  • It will provide grants of up to £1,500 (previously £2,500) for electric cars priced under £32,000. There are currently around 20 models on the market that would qualify for this grant.
  • Support for wheelchair accessible vehicles...
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Recent damage to electricity distribution network

Many individuals and businesses will have been affected by the disruption in electricity supplies due to recent storm damage.

Most of the serious damage that disrupted supplies was reconnected fairly quickly, but for many home and business owners, reconnection has become a protracted affair.

A recent letter from the Secretary of State for Business to Ofgem is...

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Time to pay taxes

January 2022 is a ‘taxing’ month. It is the last month to file a self-assessment tax return (electronically) for 2020-21 and avoid late filing penalties.

It is also a month when significant tax bills may become payable.

Companies

Companies that have a 31 March 2021 year end will need to pay any corporation tax due for the year...

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Travel between places of work

A reimbursement of expenditure incurred by an employee in travelling between two or more places of work is not “earnings” and therefore not taxable.

This is because the expenditure would be an allowable claim if the employee had paid it out of their remuneration, as he or she would be travelling in the performance of their...

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Planning for higher corporation tax rates

We are fifteen months away from a radical upward lift in corporation tax (CT) rates.

From 1 April 2023, there will be two rates of CT:

  • A small profits rate which will stay at the present 19% and will apply to companies with profits up to £50,000.
  • An increased main rate, which will be set at 25% on...
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Tax Diary December 2021/January 2022

1 December 2021 - Due date for corporation tax payable for the year ended 28 February 2021.

19 December 2021 - PAYE and NIC deductions due for month ended 5 December 2021. (If you pay your tax electronically the due date is 22 December 2021).

19 December 2021 - Filing deadline for the CIS300 monthly return for...

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Budget bad news 27 October 2021

Readers should take note of the following changes:

  • Income Tax Allowances frozen: The Income Tax personal allowance and the rates and bands are frozen until April 2026. Whilst this is not a direct tax increase, it does mean that any increases in earnings will be fully taxed and certain taxpayers may find that this process will...
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Budget bonuses 27 October 2021

There was little good cheer in the Chancellor’s announcements to parliament on 27 October. A short summary of the good news is listed below:

  • Annual Investment Allowance (AIA): The £1m limit to claims for tax relief when purchasing qualifying assets was due to return to a more modest £200,000 from the 1st of January 2022. This...
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Business gifts and tax

Business gifts are not allowed as a tax deduction against profits. The legislation treats gifts in the same way as business entertaining expenditure, which is also disallowed.

HMRC define a gift as:

“… something that is given to a person without receiving anything in exchange. It is offered voluntarily and without any expectation of a return. An...

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