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November 2021

Tax diary December 2021 and January 2022

Key dates for your diary in December 2021 and January 2022

Reforming of penalties for self-assessment late payments and submissions to align with MTDSA

This new measure will affect taxpayers and those who act on behalf of taxpayers who are required to submit either a VAT return or an Income Tax Self-Assessment (ITSA) return, more specifically those who fail to submit returns or pay on time. It will be a points-based penalty regime for regular tax return submission obligations.

What negatives came from the October 2021 Budget?

The October Budget 2021 was a mixture of both positive and negative news for UK residents and businesses. We have highlighted key negative news for both.

What can businesses cheer about from the October 2021 budget?

What can businesses cheer about from the October 2021 budget? The Chancellor’s speech to parliament on 27 October was a very small yet mixed bag of announcements.

How is tax applied to business gifts?

Business gifts are not allowed as a tax deduction against profits. The legislation treats gifts in the same way as business entertaining expenditure, which is also disallowed.

Christmas gifts for staff

Last minute shopping and planning is a Christmas tradition for many, so now would be a perfect time to remind bosses that there is a tax-free allowance for the provision of an annual party or other event for the benefit of staff and their partners.

R&D Tax Credits for Cloud Computing and Data Analytics

In the March Budget 2021, the Chancellor announced a wide scale review into the R&D tax relief scheme. The review aimed to ensure that existing R&D tax relief schemes remain fit for purpose and to build on a previous consultation to determine whether data and cloud computing services should be brought into the scope of R&D tax credits relief scheme.  

Switching to QuickBooks Online from QuickBooks Desktop

QuickBooks have announced that QuickBooks Desktop will be discontinued in the UK. This will mean that there will not be a 2022 edition and they will be ending their full support for the product on 31 January 2023.

MAKING TAX DIGITAL FOR VAT REGISTERED BUSINESSES COMPULSORY FROM APRIL 2022

Since Making Tax Digital came into force in April 2019, VAT-registered businesses in the UK above the £85,000 registration threshold are required to submit their VAT returns using ‘functional compatible software’ and store their VAT accounting records digitally. This is part of the government’s plans to make the tax system more resilient and effective, to boost business productivity and to support taxpayers.