Blackman Terry news for December 2022


 ...to December's Tax Tips & News. We hope you are all looking forward to the festive season and can enjoy some time relaxing with family and friends.This newsletter brings you tax tips and news to keep you one step ahead of the taxman. It also provides some important updates about Blackman Terry and our team. Any questions, please get in touch.
We would like to welcome all the new clients who have joined us in the last month.  

December 2022

Good bye and good luck to Lynn, one of our Senior Bookkeepers.

Lynn joined Blackman Terry in 2016 and has been a committed and valued member of staff. Lynn is leaving the team at the end of the month. We would like to thank her for all her hard work and wish her the very best. For those clients regularly in contact with Lynn, a full handover and transfer is currently underway and there will be no disruption of service to any of our clients. The bookkeeping team can be contacted on bookkeeping@blackmanterry.co.uk / 01444 882381

IFS warns of fall in household incomes

The Institute for Fiscal Studies (IFS) has warned that household incomes will see their biggest drop in generations following the Autumn Statement.
The think tank warned that growth in living standards had been weak since 2008 and that it was now going from 'bad to worse'.
Paul Johnson, Director of the IFS, said:
'Jeremy Hunt's first fiscal event as Chancellor was a sombre affair. Surging global energy prices have made the UK a poorer country. The result is an OBR forecast that the next two years will see the biggest fall in household incomes in generations.
'Unsurprisingly given the cost-of-living crisis, today's Office for Budget Responsibility forecast suggests that this is going from bad to worse. This year we are set to see the largest fall in real household disposable income per head since the late 1940s
'As ever, the forecasts are uncertain. The government's finances could end up much healthier than expected. But if the outlook deteriorates further then Jeremy Hunt really has not left himself with much room to manoeuvre.'

CBI praises Chancellor for 'delivering stability' in Autumn Statement

The Confederation of British Industry (CBI) praised Chancellor Jeremy Hunt for 'delivering stability and protecting the most vulnerable' in the Autumn Statement.
The business group welcomed the freeze in business rates and extra support for those facing higher bills. Additionally, it said that staying the course on R&D spending and major infrastructure will give a boost to communities and the country.
However, the CBI also warned the government that many businesses will 'think there's more to be done on growth'. It stated that stabilising the public finances 'inevitably means difficult decisions have to be taken', and that businesses will consider a freeze in the national insurance contribution (NIC) thresholds and additional windfall taxes as 'the sharpest stings in the tail'.
Rain Newton-Smith, Chief Economist at the CBI, said:
'The Autumn Statement lays down an important marker for the direction of the country. Business will work with government to turn [the] ambitions into a serious plan for growth that can lift us all out of the current crisis.'

Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 December 2022.
The guidance states: 'you can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 December 2022 can be found here.

Are you aware of when you have to complete a Captial Gains Tax return?

There are several scenarios when you may have to pay Captial Gains Tax. For full information, click here, or get in touch: enquiries@blackmanterry.co.uk / 01444 882381. In this article, we look at property in more detail:
If you sold a property (not your main residence) in the UK on or after 6 April 2020 you must report and pay any Capital Gains Tax due on UK residential property within:

  • 60 days of selling the property if the completion date was on or after 27 October 2021
  • 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021

It is essential that this is done as you may have to pay interest and a penalty if you do not report and pay this on time.
This differs from the old procedure which was if you sold a residential property before 6 April 2020, you would have reported your gains in a Self Assessment tax return for the tax year following the sale.
If your property was jointly owned, you must report your own gain or loss. Special rules apply if you give a UK property to your spouse, your civil partner, or to charity.
This can be a confusing area, so please get in touch if you need any assistance.  

Auto-enrolment has helped workers save £114 billion into pensions

Workers have saved more than £114 billion into their pension pots since pensions automatic enrolment was implemented ten years ago, according to data published by the Department for Work and Pensions (DWP).

The data showed that more than 10.7 million employees were paying into a workplace pension in 2021. The proportion of young people saving into a pension has more than doubled since the introduction of pensions auto-enrolment in 2012, according to the statistics.

The government says it intends to continue work to further boost the amount of people in a workplace pension. It says it will explore how auto-enrolment can 'go even further to help more people save more, sooner' by abolishing the Lower Earnings Limit for pension contributions and reducing the eligible age to 18.

Laura Trott, Minister for Pensions, said:

'Automatic enrolment has completely transformed how people save - with staggering results. In the ten years since its introduction, 10.7 million people have started saving for their pensions with this easy-to-use scheme. We have also seen a huge and much needed increase in women and young people being enrolled into a pension.'
December key tax dates

December 2022

Monday 19 PAYE, Student loan and CIS deductions are due for the month to 5th December 2022

This deadline is relevant to employers who have made PAYE deductions from their employees' salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd December 2022. Interest will be charged if payment is made late. Penalties also apply.Friday 30 Online filing deadline for submitting 2021/22 self assessment return if you require HMRC to collect any underpaid tax by making an adjustment to your 2023/24 tax code

This deadline is relevant for those individuals who complete a self assessment tax return online and who are employees. Where you have an underpayment you may request that HMRC collect the tax outstanding by making an adjustment to your tax code for the year 2023/24.

futher info here



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