Welcome to the August 2022 Newsletter from Certax Accounting
The Institute of Directors (IoD) recently urged the government to extend the capital allowances super-deduction. The business group surveyed its members and found that the temporary super-deduction has had a 'positive and measurable impact' on firms.
Meanwhile, data published by the government showed that a larger number of women were underpaid their state pension than previously thought. An estimate found that 237,000 state pensioners were paid less than what they were entitled to.
IoD calls for extension of capital allowances super-deduction
The IoD has called on the government to extend the capital allowances super-deduction.
Between 1 April 2021 and 31 March 2023, companies investing in qualifying new plant and machinery will benefit from new first year capital allowances.
Under this measure a company will be allowed to claim:
a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
a first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances.
The relief is not available for unincorporated businesses.
Data published by the IoD found that the super-deduction has had 'a positive and measurable impact' since it was introduced at Budget 2021. 13% of firms reported that the super-deduction had had a direct impact on their level of investment undertaken between 2021-23. For half of these businesses, it was entirely new investment as a direct result of the super-deduction.
The business group is urging the government to make the super-deduction permanent.
Kitty Ussher, Chief Economist at the IoD, said: 'It is wrong to look at declining overall levels of business investment in recent months and conclude that the super-deduction has not worked. Instead, our data shows that even less investment would have taken place if the super-deduction did not exist.'
More women have been underpaid state pension than previously thought
Figures published by the government have revealed that more women have been underpaid their state pension than previously thought.
The data found that 237,000 pensioners were underpaid their state pension. £1.5 billion in state pension payments has been underpaid, the government revealed.
This equates to 105,000 more affected individuals than calculated in 2021. Figures published by the Department for Work and Pensions (DWP) found that this number includes widows and divorcees who may have been underpaid their state pension for years.
A report on the issue carried out by the Public Accounts Committee (PAC) found that pension underpayments were a result of outdated systems and the manual processing of pensions at the DWP.
Commenting on the matter, a spokesperson for the National Audit Office (NAO), said: 'DWP has carried out additional reviews of its records to understand the pensioners that may be affected, but the full extent of the underpayments will not be known until every case has been reviewed.'
ESSENTIAL TAX DATES FOR AUGUST
2 August Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 July 2022.
19 August PAYE, Student loan and CIS deductions are due for the month to 5 August 2022.
QUOTE OF THE MONTH
'Businesses who import plastic packaging need to check who is responsible for complying with and paying the PPT.'
A government spokesperson commenting on the filing of the first Plastic Packaging Tax returns in July.