Blackman Terry Tax News for February 2022
Published: 07 Feb 2022
We apologies for the lack of a January newsletter. A busy January and several staff affected by Covid has meant we are a little behind with admin! This is a shortened newsletter and your normal mid month addition will arrive in the next couple of weeks.
Our team continues to grow, and we welcome 2 new members to the bookkeeping team, Nina and Sakina.
HMRC has published the latest edition of the Employer Bulletin. This guidance for employers can be found here.
Any questions, please get in touch.
We would like to welcome all the new clients who have joined us in the last month.
email@example.com / 01444 882381
HMRC waives self assessment penalties for one month to ease COVID-19 pressures
HMRC is waiving late filing and late payment penalties for self assessment taxpayers for one month.
The measure will give those taxpayers affected by the coronavirus (COVID-19) extra time, if they need it, to complete their 2020/21 tax return and pay any tax due.
HMRC is still encouraging taxpayers to file and pay on time if they can. The tax authority also revealed of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:
anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February; and
anyone who cannot pay their self assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.
Further information can be found here.
FCA to introduce new consumer duty
The Financial Conduct Authority (FCA) is set to introduce a new consumer duty to better protect users of financial services.
The new rules will help tackle harmful practices such as providers of financial services presenting information in a way that exploits consumers’ behavioural biases; selling products or services that are not fit for purpose; or providing poor customer support.
The FCA says it wants to ‘drive a fundamental shift in industry mindset’ by raising standards and helping firms to get products and services right in the first place.
The new rules will mean firms will have to place emphasis on supporting and empowering their clients to make good financial decisions and avoid foreseeable harm throughout the customer relationship.
Consultation dates and further information can be found here.
National Insurance and dividend tax rises announced for social care reform
From April 2022, the government plans to create a new social care levy which will see UK-wide tax and National Insurance Contribution (NIC) increases.
There will be a 1.25% increase in NICs on earned income, with dividend tax rates also increasing by 1.25%. The money raised will be ringfenced for health and social care costs.
The Levy will be effectively introduced from April 2022, when NIC for working age employees, the self-employed and employers will increase by 1.25% and be added to the existing NHS allocation. The Levy will not apply to Class 2 or 3 NICs.
February key tax dates
Wednesday 2 Deadline for submitting P46(car) for employees whose car/fuel benefits changed during the quarter to 5th January 2022
Saturday 19 PAYE, Student loan and CIS deductions are due for the month to 5th February 2022
Further information can be found here.
Please contact us if we can help you with these or any other tax or accounts matters.
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Company Accounts | Company Tax | Personal Tax | Finance Director Services | Cloud Accounting | Bookkeeping / Payroll | Inheritance Tax
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