Welcome to the July 2022 Newsletter from Trudgeon HallingThe Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) pilot is being extended to include more self-employed individuals and landlords, HMRC has stated. Meanwhile, the British Vehicle Rental and Leasing Association (BVRLA) has called on Chancellor Rishi Sunak to keep benefit-in-kind (BiK) tax rates low on company cars in order to incentivise their use amongst workers. MTD for income tax pilot extendedHMRC is extending the pilot for MTD for ITSA to more self-employed workers and landlords. From July, those taking part will be able to test MTD for ITSA before April 2024, including their own internal processes for managing MTD. Agents and customers are already taking part, and HMRC wants more agents to start signing up a small number of their clients to trial the system. From April 2024, all businesses with annual income from self employment or property above £10,000 will have to follow MTD rules. Under MTD, the quarterly reporting is a summary, providing a total of the incomes and outcomes going through the business per quarter. As a result, there is not necessarily a need to report under each property address as it is an accumulation of the all the data that is required, HMRC said. In a statement HMRC said: 'We will be testing the first quarterly submission with some of these customers from 6 July, after which we aim to open up the pilot more widely to some customer types. 'The update to agents is encouraging them to start considering whether they can bring some customers into the pilot this summer, providing them with an opportunity to test MTD for ITSA with their clients as well as playing a key role in testing the new system themselves before mandation in 2024.' Trade body urges Chancellor to keep tax rates low on electric company carsThe British Vehicle Rental and Leasing Association (BVRLA) has urged Chancellor Rishi Sunak to keep benefit-in-kind (BiK) tax rates low on electric company cars to promote their usage amongst UK workers. The BVRLA said that BiK tax rates for electric vehicles (EVs) are only known up to 2024/25, and that beyond this time, 'the government's intentions aren't clear'. It is calling on the government to 'provide as much foresight on future rates as possible' and ensure the tax on EVs is kept down to incentivise usage. Commenting on the issue, Gerry Keaney, Chief Executive of the BVRLA, said: 'The strides we have made as an industry to phase out petrol and diesel cars before 2030 are clear – nearly 60% of electric vehicles on UK roads are company registered. 'The uncertainty caused by the lack of foresight beyond 2024/25, or by seeing a sudden jump in rates, will cause growth of EVs to stall. This needs to be addressed by the Chancellor in the Budget this autumn.' ESSENTIAL TAX DATES FOR JULY5 JulyDeadline for reaching a PAYE Settlement Agreement for 2021/22. 6 JulyDeadline for forms P11D and P11D(b) for 2021/22 to be submitted to HMRC and copies to be issued to employees concerned. Deadline for employers to report share incentives for 2021/22. 14 July Due date for income tax for the CT61 period to 30 June 2022. 19 July Class 1A NICs due for 2021/22. PAYE, Student loan and CIS deductions due for the month to 5 July 2022. PAYE quarterly payments are due for small employers for the pay periods 6 April 2022 to 5 July 2022. 31 July Second payment on account 2021/22 due. QUOTE OF THE MONTH'While workers in the gig economy have challenged their work and tax status in the courts, there is no recourse for workers deemed subject to IR35 tax rules despite the confusion and non-compliance that persist even in central government itself.' Dame Meg Hillier MP, Chair of the Public Accounts Committee (PAC), commenting on a report published by the Committee which urges HMRC to demonstrate that off-payroll working rules, commonly known as IR35, can operate effectively and fairly in the real world. ON OUR WEBSITEA wealth of resources for businesses With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information. Useful information for individuals For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website. IN THE NEWSPaper £20 and £50 notes to be withdrawn from circulation by end of September The Bank of England (BoE) has reminded the public that it will be withdrawing the legal tender status of paper £20 and £50 banknotes after 30 September 2022. Click here for the full story Tax gap remains steady at 5.1% The estimated tax gap for the 2020/21 tax year is 5.1% - the second lowest recorded percentage - and is unchanged from the previous year, according to the latest data from HMRC. Click here for the full story UK outlines plans to tighten 'buy now pay later' rules The UK government has announced plans to strengthen rules on 'buy now pay later' services, improving protection for users of the short-term credit. Click here for the full story Manufacturers call for support package Manufacturing trade body Make UK is calling for an emergency, pre-recess package of business support measures. Click here for the full story IoD launches new inquiry into governance arrangements and framework The Institute of Directors (IoD) has launched a new inquiry to analyse how good corporate governance can drive innovation. Click here for the full story
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