30 day limit to report & pay CGT on residential property now 60 days

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

Anyone selling a residential property since April 2020 has had to report and pay their Capital Gains Tax to HMRC within 30 days of the sale completing. However, the Budget brought news of a welcome relaxation of these rules, which extends the reporting and payment window from 30 days to 60 days from 27 October 2021 onwards.

For further advice on this matter, please contact me.

Keith Witchell

Director



Company car tax rates frozen from 2022 to 2025

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

Buried in the Budget documents was some welcome confirmation that company car tax rates and bands will be frozen from 2022 through to 2025. This means that electric cars will have a BIK rate of 2% for each of the 2022/23, 2023/24 and 2024/25 tax years, while the BIK for hybrids and other cars will also remain the same for those 3 tax years. However, the van benefit and fuel benefit charges will continue to increase in line with CPI from April 2022.

For further advice on this matter, please contact me.

Keith Witchell

Director



Recovery loan scheme extended to June 2022

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

The Budget documents confirm that the Recovery Loan Scheme to help businesses get back on their feet following the pandemic, will be extended until 30 June 2022. However, the government guarantee of those loans will reduce from 80% to 70% in order to encourage the lending market to move towards normality as the economy continues to recover.

For further advice on this matter, please contact me.

Keith Witchell

Director



50% business rates relief for retail, hospitality & leisure from April 2022

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

A new temporary 50% business rates discount was announced for these sectors, in a bid to help their recovery after the pandemic, which will apply from April 2022 to March 2023, capped at £110,000 per business. In addition, the rates multiplier which was due to apply in April 2022 will be frozen for the second year running, to avoid unwelcome rates increases for recovering businesses.

For further advice on this matter, please contact me.

Keith Witchell

Director



R&D tax reliefs to be reformed from April 2023

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

Following the consultation launched at the Spring 2021 Budget, the Chancellor confirmed that R&D tax reliefs will be reformed from April 2023, to allow the inclusion of cloud and data costs which are often used in research, while also focusing the relief on R&D activities carried out in the UK, but also to target abuse and improve compliance. We’ll bring further news on this as details are released.

For further advice on this matter, please contact me.

Keith Witchell

Director



Annual investment allowance to remain at £1m until April 2023

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

The Chancellor confirmed that the current £1 million Annual Investment Allowance, which provides tax relief on the full cost of purchasing plant and machinery (and vans) for your business (whether new or second hand), will remain at that level through to March 2023. This is a welcome measure as it was previously due to revert to £200k from January 2022, and it applies alongside super deduction relief which gives tax relief on 130% of the purchase of qualifying new plant and equipment.

For further advice on this matter, please contact me.

Keith Witchell

Director



1.25% dividend tax rise from April 2022

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

This measure was also announced last month (see previous Tax Bulletin), alongside the NIC increase, in a bid to bring parity for limited company owners that often remunerate themselves with a low salary plus dividends. This increase sees the basic dividend tax rate increase from 7.5% to 8.75% from April 2022, while higher rate taxpayers will see an increase from 32.5% to 33.75%, and additional rate taxpayers go from 38.1% to 39.35%.

For further advice on this matter, please contact me.

Keith Witchell

Director



1.25% national insurance rise from April 2022

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

The Budget documents confirm Rishi’s announcement last month that NIC will increase by 1.25% for both employees and employers from April 2022, with all wage levels over the NIC threshold affected. Employees will therefore pay 13.25% on earnings up to £50,270 pa, and 3.25% on earnings above this level, while the rate for employers will increase from 13.8% to 15.05%. Class 4 NIC rates for the self-employed also increase, from 9% to 10.25%, and from 2% to 3.25% on higher profits.

For further advice on this matter, please contact me.

Keith Witchell

Director



Universal credit withdrawal taper rate reduced from 63% to 55%

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

In a bid to encourage those on lower incomes to work more without such a significant drop in their universal credit, the Chancellor announced a permanent reduction in the taper rate at which universal credit is withdrawn for every extra £1 earned, from the current 63% to 55%. This change will be made in the coming weeks, and will be in force no later than 1 December 2021.

For further advice on this matter, please contact me.

Keith Witchell

Director



National living wage increased to £9.50 per hour from April 2022

Keith Witchell


October 27, 2021|In KRW Tax news|By Keith Witchell

As already released to the media ahead of the Budget Speech, Rishi Sunak confirmed that the National Living Wage for employees aged 23 and over will increase from £8.91 to £9.50 from April 2022, an above inflation increase of 6.6%. National Minimum wage for younger employees will also increase from April 2022, with large increases for apprentices and those aged 21 to 22 in particular.

For further advice on this matter, please contact me.

Keith Witchell

Director