HLAS

The December edition of the Employer Bulletin brings you all the latest HMRC updates and guidance to support employers and payroll agents. There is important information on: PAYE – there is important information for those who pay employees early for Christmas, and advice on how to prevent and correct payroll errors UK Transition and the recently agreed UK-Swiss Convention on Social Security coordination which came into force on 1 November 2021 coronavirus (COVID-19) summary of guidance published by HMRC, and declaring grants on tax returns tax updates and changes to guidance, with information on the tax avoidance campaign See: Employer Bulletin: December [...]

The Office for National Statistics (ONS) estimate that between August to October there was a   continuing recovery in the labour market, with a quarterly increase in the employment rate, while the unemployment rate decreased. Total hours worked increased on the quarter, due to the relaxing of some coronavirus (COVID-19) restrictions but are still below pre-coronavirus levels. The UK employment rate was estimated at 75.5%, 1.1 percentage points lower than before the coronavirus pandemic (December 2019 to February 2020), but 0.2 percentage points higher than the previous quarter (May to July 2021). The UK unemployment rate was estimated at 4.2%, 0.2 [...]

If your tax payment due on 31 January is more than you expected there is still time to reduce the liability if you are prepared to take a risk. An HMRC tax planning opportunity is to invest in a company that qualifies under the Enterprise Investment Scheme (EIS) or under Seed EIS. These investments enable you to deduct 30% or 50% respectively of the amount invested from your income tax bill. For example, £10,000 invested in a qualifying EIS company will enable you to deduct £3,000 from your tax bill. Normally the shares need to be issued in the tax [...]

Top of the new year to do list for many individuals is to make or update their will. Many think this is something to leave until later in life, but it is important to get things in place once property is acquired or when children come along. In the absence of a will there are statutory rules which dictate how your assets are distributed on death. Those statutory intestacy rules may not be tax efficient, and you might to want to make specific provision in your will for your unmarried partner or for the guardianship of your children. Talk to [...]

Many businesses may have been too short of cash to take advantage of the new super-deduction for investing in new plant in 2021 but may be more confident about investing in 2022. This tax break, which started on 1 April 2021 continues until 31 March 2023, allows companies to deduct 130% of the cost of new plant and machinery from their profits where that plant would normally be included in the general capital allowances pool. If a company buys a new commercial vehicle costing £50,000 that means they can deduct £65,000 from trading profit saving £12,350 in corporation tax. Note [...]

In the run up to the Autumn Budget many were predicting that the chancellor might announce restrictions to pension tax relief. Thankfully nothing has changed -yet. For most taxpayers the maximum pension contribution continues to be £40,000 each tax year. This limit covers both contributions by the individual and by their employer into their pension fund. Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current year, but then lapses if unused.  Thus, the unused pension allowance for 2018/19 will lapse on 5 [...]

Second hand plant and machinery does not qualify for the 130% super-deduction but would still qualify for the 100% Annual Investment Allowance (AIA). The amount of expenditure qualifying for 100%  tax relief was originally scheduled to revert to just £200,000 from 1 January 2021 but will now continue at £1 million until 31 March 2023. Although the 130% super-deduction only applies to limited companies the AIA is available to sole traders and partnerships as well. Remember that there is currently a further 100% first year allowance for the cost of buying a new zero emission car for the business. Previously [...]

At this time of year, we think about New Year’s resolutions. It is also a good time to start planning your tax affairs before the end of the tax year on 5th April. An obvious tax planning point would be to maximise your ISA allowances for the 2021/22 tax year (still £20,000 each). You might also want to consider increasing your pension savings before 5 April 2022 as the unused annual pension allowance is lost after three years. For those looking to do some inheritance tax planning it would be a good time to review (or make) your Will   [...]

In what is now becoming a weekly event the government has added Nigeria to the travel red list from 6 December. Currently, the majority of cases in the UK have links to overseas travel from South Africa and Nigeria, and over the past week, 21 Omicron cases reported originate from Nigeria. A temporary travel ban will therefore be introduced for all non-UK and non-Irish citizens and residents who have been in Nigeria in the last 10 days, meaning they will be refused entry into the UK. This does not apply to those who have stayed airside and only transited through [...]

All eligible adults in England aged 18 and over will be offered a COVID-19 booster vaccine by the end of January. Following advice from the independent experts at the Joint Committee for Vaccination and Immunisation (JCVI), everyone who is currently eligible - including those aged 40 and over, health and social care workers and those at increased risk from the virus due to health conditions - will be able to book their jab from three months after their second dose, meaning an additional 7 million people over 40 are now eligible. The government and the NHS are urging younger people [...]