The Treasury has issued new guidance which relates to 'Special Severance Payments' (SSPs) made by public sector employers to their employees.
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.
Have you, or do you ever, employ casual workers for a short period?
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.
As discussed in our Blog “Brexit and National Insurance – rules from 1 January 2021”, A1 certificates continue to be obtained for posted workers so that UK resident employees and employers can remain within the UK National Insurance system and exempt from local social security contributions whilst working in countries within the EU, Iceland, Liechtenstein, Norway or Switzerland. Following the UK’s exit from the EU, although the new agreement in this respect is almost a direct replica of the previous regulations, the application process for obtaining such coverage has seen some changes.
6 April 2021 signalled the start of another new tax year. Perhaps an appropriate time therefore to reflect on a recent review of awareness amongst Scottish taxpayers which found that 33% of those surveyed were unaware that the Scottish Parliament had made changes to the tax system since 2015, with a more worrying 26% completely unaware that the Scottish Parliament had powers to make changes to income tax rates in Scotland. This has resulted in professional bodies calling on Scotland’s political parties to improve awareness of devolved taxes.