Weekly update 1 October 2021

Welcome to the latest edition of our weekly update.

MTD Updates

The government has delayed the introduction of making tax digital for income tax self-assessment to the 06 April 2024.

Businesses get more time to prepare for digital tax changes.
This will give individuals and businesses more time to prepare following the pandemic.
General partnerships will not be required to join MTD for ITSA until 25 April 2025.
Reformed penalties are also being introduced.

Tax News

The OTS is published an analysis of the advantages and disadvantages of changing the tax year and date for individuals.

Office for Tax Simplification publishes report on tax year end change.
For the tax year to align with the calendar year and end on December 31 would be “logical”.
The costs of change are significant, both in terms of the financial cost and the opportunity cost.

Self-employed Updates

HMRC is confirmed that normal process for registering as self-assessment has been restored and taxpayer now need to contact them to arrange collection of class 2 national insurance contributions.

Registration of self-employed reverts to pre-Covid process.
During Covid, face-to-face interviews were suspended for individuals applying for a NI number.
All new registrations as self-employed should use form CWF1 to register.

Packaging Tax

For business, HMRC has published additional support for those who manufacture and import packaging to help them understand whether they need to register and are liable for plastic packaging tax.

Additional support for the business on new plastic packaging tax.
Announced at Budget 2018, the plastic packaging tax will come into force on April 1. 2022.
The tax applies to packaging that contains more plastic by weight than any other single material.

Our Latest Snippets

Many medium-sized businesses delay adopting new IR35 rules.

Employees can request home working from day one in job.

Government to lower salary threshold for student loan repayments.

Base rate unchanged at 0.1% but bank issues inflation warning.

Upcoming Key Dates

October 5: Deadline to advise HMRC of need to register for Self-Assessment for 2020/21.

October 14: Last day to make CJRS claims for September.

October 22: Deadline for electronic remittance of PAYA, NICs and CIS.

October 27: The Autumn Budget and Spending Review will take place.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.