Monthly Archives: January 2022

Employment of someone to work in your home

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.

Au pairs

Au pairs usually...

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Are you eligible for local authority grants?

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 variant is...

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Self-employed tax twisters

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, a self-employed...

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Landlords and tax – the basics

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 property can...
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More time to file tax returns and pay tax due

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 a...

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Are you registered to use MTD for VAT?

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 of the...

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Don\’t forget to declare COVID-19 grants

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 year.

“If...

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Will your earnings exceed any of these amounts in 2021-22?

£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 still...

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Tax Diary January/February 2022

1 January 2022 - Due date for Corporation Tax due for the year ended 31 March 2021.

19 January 2022 - PAYE and NIC deductions due for month ended 5 January 2022. (If you pay your tax electronically the due date is 22 January 2022).

19 January 2022 - Filing deadline for the CIS300 monthly return for...

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January is tax payment time

As you will see from the tax diary notes this month, there are two significant tax payment deadlines this month.

  • 1 January 2022 – Companies with a 31 March 2021 year end date will need to settle their Corporation Tax payment on or before this date.
  • 31 January 2022 – Taxpayers who are subject to self-assessment will...
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