The latest budget was a bit of a damp squib with many of the major tax changes for the coming tax year made back in March other than the introduction of the new Health and Social Care Levy announced in September.
A small concession to the payment of Capital Gains Tax on residential property was released in the budget papers although not highlighted on the day with this now extended to 60 days from the previous 30 applying after 26 October.
It has also been confirmed that the Annual Investment Allowance (AIA) is to remain at £1m until 31 March 2023 as this was due to drop to £200,000 from 31st December 2021 thus tying into the end of the ‘Super Deductions’ announced back in March.
Whilst Alcohol Duties remained frozen until February 2023, smokers were hit again. The rates for Alcohol Duty are subject to reform, with changes to the structure that will see some higher alcohol content product Duty rates increase although there is some good cheer as beer and cider sold on draught in pubs will see three pence a pint taken off. The Duty on champagne will also be less.
Away from the budget, Making Tax Digital (MTD) has been put back a year for sole traders and landlords, which is good news with the dates for partnerships and companies also deferred for a further period.
However there is also bad news as from 1st April 2022 HMRC will be introducing a new points-based penalty regime for late submissions of VAT returns and at a certain threshold of points, a financial penalty of £200 will be charged.
The Self-assessment returns date (31 January) is fast approaching and on behalf of my fellow accountants I would ask you not to leave this until the last minute thus leaving little time for us to plan your affairs and inform you in good time of tax payable.
Finally I would like to take the opportunity of wishing you all a happy and peaceful Christmas and a prosperous New Year.
Carla Hobby
www.morrislane.co.uk
This article is featured in the December issue of the Dorset Business Focus magazine. Read on the online version here.