HLAS

The Annual Tax on Enveloped Dwellings (ATED) was introduced in April 2012 and is charged where certain residential properties are owned within a corporate structure. This tax not only catches UK properties owned by wealthy oligarchs via offshore companies but also applies to UK resident companies. Originally the charge only applied where the value of the property exceeded £2 million but that threshold has been subsequently reduced to £500,000. The charge for 2022/23 starts at £3,800 and rises to £244,750 where the property value is more than £20 million. Properties need to be revalued every five years and the latest [...]

Unless there is full reimbursement of fuel provided for the private use of a company car there is a benefit in kind charge based on a fixed figure of £24,600 which is multiplied by the CO2 emissions percentage that is used to calculate the company car benefit for that vehicle. For a high emission car that percentage can be as high as 37%, resulting in a benefit in kind charge of £9,102 and an income tax bill of £3,640.80 for a higher rate taxpayer. Even with current fuel prices, that would be an awful lot of private mileage, so the [...]

Last year the Government announced a one-year exemption from paying employers national insurance contributions (NICs) where military veterans are recruited by civilian employers. Employers can claim relief from employer NICs for the first 12 months of the veteran’s first civilian job after they leave the military. For 2021/22 employers had to initially pay the employers NICs and can now claim back the amounts paid. From 6 April 2022, a new zero NIC rate will apply in these circumstances, and employers should use NIC letter V.

As the 2021/22 tax year has now ended, employers need to carry out the following end of year procedures: Provide employees with their P60 annual summaries by 31 May 2022, Prepare forms P11D for employees’ expenses and benefits by 5 July 2022, Update employees’ payroll data for 2022/23, in particular their new tax codes, and Update their payroll software for 2022/23 if they haven’t already done so.

Many in the hospitality sector were hoping that the Chancellor would extend the 12.5% reduced rate that has applied since 1 October 2021 but, as scheduled, the rate has reverted to 20% from 1 April 2022. The increase applies to hospitality, visitor attractions, catering services including restaurants and takeaways. This has a consequential effect on the VAT Flat Rate Scheme percentages from 1 April 2022 onwards as set out below:

The 130% super-deduction for companies that invest in new plant and machinery applies where the expenditure is incurred between 1 April 2021 and 31 March 2023. Many companies recovering from the coronavirus pandemic have not had the resources to commit thus far and the war in Ukraine may have made them reluctant to invest until the political and economic situation stabilises. Thankfully the special tax relief announced in the Spring 2021 Budget will be available for expenditure up until 31 March 2023 potentially saving £247 for every £1,000 invested in new equipment. It is hoped that the current £1 million [...]

In the March 2021 Budget, it was announced that the normal one year carry back for trading losses would be extended to three years. That means that many businesses that have made losses during the COVID-19 pandemic may be able to obtain a repayment of tax paid in that earlier three-year period. This enhanced carry back applies to unincorporated businesses as well as limited companies and will provide a much-needed tax refund. However, with the corporation tax rate increasing to 25% from 1 April 2023 for profits over £250,000 it may be more beneficial to carry the loss forward. Note [...]

Updated ‘finding and choosing a private COVID-19 provider’ guidance sets out what an individual should know before they look for a private provider or book a test. The guidance includes information on: minimum standards; UKAS accreditation; the provider lists published on GOV.UK; and what the government are doing to protect consumers. The provider lists published on GOV.UK are of providers that have demonstrated compliance with the government’s minimum standards for the type of commercial COVID-19 testing service they offer. The lists are not exhaustive. Some providers have decided to opt out from being published on these lists. See: Finding and [...]

The government is bolstering consumer rights, strengthening the enforcement powers of the Competition and Markets Authority (CMA), and supporting consumers in resolving their own disputes without having to go the courts. Plans include making it clearly illegal to pay someone to write or host a fake review, so people are not cheated by bogus ratings. The government is consulting on a new law against: commissioning someone to write or submit a fake review; hosting consumer reviews without taking reasonable steps to check they are genuine; or offering or advertising to submit, commission or facilitate fake reviews. There will also be clearer [...]

HMRC has issued a press release to confirm that more than 142,000 taxpayers have used HMRC’s online ‘Time to Pay’ facility to spread the cost of their self-assessment tax bill since April 2021. The self-assessment deadline for 2020/21 tax returns was 31 January 2022 but, this year, HMRC gave taxpayers until 1 April to pay any tax owed and not face penalties. Individuals who were unable to pay in full but had a tax bill of under £30,000 could use the online Time to Pay service to spread the cost into manageable monthly instalments. Those who owed more than £30,000 [...]