National Insurance Contributions
Due to the COVID-19 pandemic, many of us have had to work from home. As a result, more employees than ever have claimed tax relief for the 2020/21 tax year for the additional costs incurred as a direct result of working from home. As the pandemic has continued into the current year, is likely that many employees will also be eligible to make a claim for relief in the 2021/22 tax year. Employees who have been required to work from home, even if only for one day, are entitled to claim tax relief. This relief is not, however, available to those who choose to work from home.
Some of you reading this will be old enough to remember the 1980s when big hair and shoulder pads went hand in hand with Golf GTIs and, dare I say it, Ford Capris with the must-have furry dice.
Whilst the Covid 19 pandemic rumbles on, with the furlough scheme set to come to an end on 30 September and the various relaxations in restrictions across the whole of the UK, economic recovery must be top of the Chancellor’s agenda. It won’t come as a surprise then that tax hikes and reforms will be part of the overall plan and it appears that Inheritance Tax (“IHT”) is a specific target in Rishi Sunak’s campaign, as Government insiders reportedly warn that “we’ve got to start paying the bill for this pandemic”.
The countdown to Making Tax Digital (“MTD”) for Income Tax has begun with HMRC proposing that those with annual trading profits and/or property profits in excess of £10,000 will be required to keep digital records and submit updates to HMRC on a quarterly basis from April 2023. This will be followed by a ‘Final Declaration’, which replaces the Self-Assessment Tax Return, to report other sources of income and calculate total tax liabilities, which are due for payment by 31 January as is the case now.