Today HMRC has announced that it will not charge: 1. Late filing penalties for those who file online by 28 February 2022. 2. Late payment penalties for those who pay the tax due in full or set up a payment plan by 1 April 2022. Time to Pay options are still available once you have filed your 2020-21 tax return, and you can set up an online payment plan to spread Self Assessment bills of up to £30,000, over and up
When you are self employed and apply for a mortgage the lender requires proof of your taxable income, in the past this was form “SA302” and “tax overviews” but HMRC don’t issue paper SA302’s now HMRC worked with the Council of Mortgage Lenders and software providers to ensure that printed tax calculations from commercial software are accepted instead of form SA302. HMRC have produced a list of lenders who have signed up to accept a tax calculation and tax year
The latest update on making tax digital means that records have to be kept digitally from these dates if your turnover is over £10,000 , its a huge change and needs to be planned well in advance From April 2024: self-employed businesses and landlords with business turnover above £10,000 report under MTD for ITSA. From April 2025: general partnerships join. To use Making Tax Digital for Income Tax, you’ll need to: get software that is compatible with Making Tax Digital
Employees and the self-employed will pay more tax from April 2022 to fund social care costs At first this will be as a 1.25 percentage point increase in National Insurance. This increase will apply to Class 1 NICs paid by employees and Class 4 NICs paid by self-employed workers -and it will be administered by HMRC and collected via the current channels for NICs; Pay As You Earn and income tax self-assessment. From April 2023 National Insurance will return to
Expenses You Can Claim Work Clothes Clothes for work are a very grey area but here we give you some very useful tips. HMRC argue that of the clothes that can be worn day to day have a “duality of purpose” in technical speak, what this means is they have a personal and private use even if you don’t wear them for private purposes HMRC argue the clothes are not “exclusively” for the business and therefore not a business expense.