In a move to enhance tax compliance and tackle tax evasion, HM Revenue and Customs (HMRC) is set to implement new regulations on data collection. These changes, effective from April 2025, will have a significant impact on owner managed businesses and individual employees. In this blog post, we will delve into the details of the HMRC data collection requirements and explore the implications for businesses and employees. Understanding the New Rules Under the new regulations, owner managed business directors will be subject to increased scrutiny regarding dividend payments. Employers will also be obligated to report individual employees’ working hours. These […]
Category Archives: Legislation
If you’re submitting a tax return to report unearned income, you may be surprised to find that HMRC expects you to make a student loan repayment too. No matter how much income you make from your rental properties or business activities, if you’re earning more than the minimum wage and have a student loan open, HMRC will require you to repay. The good news is that it doesn’t matter if your property or trading income isn’t enough to cover your whole repayment amount; as long as you make some contribution, HMRC will be happy. Keep an eye out for… It’s […]
With the recent surge in cost of living prices, it’s easy to miss other important news that you need to take notice of! So, in today’s blog, we will discuss the National Insurance changes and what that could mean for you. What are the changes? It has been announced that from April 6th employers, employees and the self-employed will pay an increase of 1.25p for National Insurance. But why the change? Why the increase? The increase of tax will go towards the NHS and funding health and social care in the UK. The Government stated that the extra funding will […]
MTD For VAT The deadline for all VAT records to be recorded and submitted digitally is fast approaching. From April 2022, the requirements to keep digital VAT records and send returns using MTD-compatible software will apply to all VAT-registered businesses. This means that even businesses that are below the VAT threshold and voluntarily VAT-registered must meet MTD rules. This stage is the next part of HMRC’s 10-year strategy for the tax system. “to improve its resilience, effectiveness and support for taxpayers” Many Still Need To Opt-In According to HMRC’s latest figures in September 2021, only 30% of those VAT registered […]
Making Tax Digital is already compulsory for VAT registered businesses with a taxable turnover of over £85,000. At the present time, smaller businesses with less turnover aren’t currently obligated to comply. However, the extended date for Making Tax Digital for all VAT registered businesses is now confirmed as April 2022. Making Tax Digital For VAT As we know, MTD is already compulsory for VAT registered traders with an annual turnover exceeding £85,000. However, smaller VAT registered businesses with lower turnover have so far been exempt. This is, in part, due to plans to make tax digital for all VAT registered […]
Employers and self-employed people now have 90 days to repay coronavirus grants if they have been over-paid. HMRC have announced that they must be informed within a 90 day period if businesses have over-claimed furlough payments through the CJRS. Self-employed individuals have the same time-period to report any overpaid grants through SEISS. The excess payments must also be paid back or penalties will apply. CJRS Overpayments – Furlough Scheme A CJRS grant should be repaid to HMRC if the funds were not used to reimburse the employer’s costs related to furloughed employees within a reasonable period of time. The grant […]
Update On Part-time Furlough, Changes To The Coronavirus Job Retention Scheme And The Second Self-employed Income Support Scheme. On the 28th of May, the Chancellor Rishi Sunak announced plans to end the eight-month coronavirus job retention scheme (CJRS) and self-employed income support scheme (SEISS) by gradually withdrawing taxpayers’ contributions from August. Whilst outlining his plans Mr Sunak said that he intends to reduce contributions to the furlough scheme as it “cannot continue indefinitely”. This means that in the final phase of the eight-month scheme employers will be asked to “contribute, alongside the taxpayer, towards the wages of their staff”. CJRS […]
The self-employed income support scheme (SEISS) allows self-employed tax-payers to claim a taxable grant of 80% of their average monthly trading profits. This will cover 3 months and will be paid in one instalment (capped at £7,500). The grant will be subject to Income Tax and self-employed National Insurance. Work Restrictions Unlike the furlough scheme, if you receive the grant you CAN continue to work, start a new trade or take on other employment. You are also able to take part in voluntary work, or duties as an armed forces reservist. When Is It Open? The self-employed income support scheme […]
The coronavirus job retention scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. This scheme exists to allow employers to claim for 80% of furloughed employees’ (employees on a leave of absence) via an online portal. The claim can be made for usual monthly wage costs, up to £2,500 a month. (plus associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions.) The scheme is now up and running and you can make a claim here. Frequently Asked Questions This scheme works very differently from standard payroll […]
The topic of Statutory Sick Pay (SSP) for employees who are sick or in self-isolation is still a hot topic for employers. This is mostly due to the raft of information and misinformation being circulated. With this in mind, we wanted to put together the key points of the current legislation for employers with staff claiming SSP. Advice About Self Isolating On the 12th of March 2020 Public Health England, NHS National Services Scotland, Public Health Wales, the Regional Agency for Public Health and Social Well-being in Northern Ireland on 12 March 2020 made an announcement which stated that anyone […]