Cryptocurrency and crypto assets are increasingly becoming a common investment opportunity for many individuals and businesses. Whilst most investors will be ‘testing the water’ with any gains arising from the Capital Gains Tax ‘CGT’ annual exempt amount of £12,300 each year, there are others who are lucky enough to be realizing substantial gains which do need to be reported to HMRC. Crypto also provides privacy and anonymity, which can, unfortunately, attract criminal activity.
Throughout the COVID-19 pandemic, workers across the country have been required to work from home due to national lockdowns and to curb the spread of coronavirus. As a result, and to help with the cost of increased household expenses, the government allowed a concession whereby workers could claim an allowance of £6 per week (raised from £4 per week in the previous tax year).
HMRC have announced they will effectively push back the Self Assessment filing deadline for submission of the 2020/21 Self Assessment Tax Returns from 31 January 2022 to 28 February 2022. For the second year in a row this gives the taxpayer additional time to complete their tax return and pay any tax due. The late filing penalty of £100 will not be charged unless the tax return is submitted after 28 February 2022.
HMRC are sending letters to individuals who are named as a Person of Significant Control (PSC) of a company registered at Companies House. These letters have been issued to a large number of taxpayers and are being sent directly to individuals and/or separate letters to their agent, where the taxpayer is represented.
Sound good...? There may be a way for you to have tax collected via your tax code instead of paying your total bill in January. You can pay your Self-Assessment bill through your PAYE tax code if you submit your Self-Assessment Tax Return online by 30 December.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) compliance obligations are still being introduced in the UK. This was originally due to be implemented in 2023, but after much lobbying from a variety of professional bodies, this has now been postponed until April 2024.