Welcome to the January 2022 Newsletter from Certax Accounting
The government recently published a range of tax documents as part of its first Tax Administration and Maintenance (TAM) Day. The 30 publications released by the government on TAM Day include Calls for Evidence, Draft Regulations, Policy Papers and Corporate Reports, and tackle a range of topics.
Meanwhile, Chancellor Rishi Sunak responded to a report published by the Office of Tax Simplification (OTS) on reforming the capital gains tax (CGT) system. The government has accepted some of the OTS's recommendations on the administrative issues with CGT.
Government sets out tax details on TAM Day
The UK government recently marked the inaugural Tax Administration and Maintenance (TAM) Day with the release of 30 papers covering a wide range of tax issues.
Chancellor Rishi Sunak made the commitment to have a TAM Day in the Autumn Budget. The aim was for a dedicated day for the administration and maintenance of the UK tax system. The 30 publications released by the government on TAM Day include Calls for Evidence, Draft Regulations, Policy Papers and Corporate Reports.
The government has set out further detail on the conclusions to its review of business rates, including more frequent revaluations, improvement relief, exemptions for green technology, and administrative reforms.
A report on Research and Development (R&D) tax reliefs was published, providing further details on announcements made at the Budget which included refocusing relief in the UK; targeting abuse; and supporting innovation by expanding qualifying expenditure to capture cloud and data costs.
Additionally, an update on reforms to Small Brewers' Relief was published, which will see the government invest around £15 million of additional funding into the craft brewing sector.
Jim Harra, HMRC's First Permanent Secretary and Chief Executive, said: 'As we continue our work to improve the tax system for UK taxpayers and clamp down on avoidance and evasion, we know that an open dialogue with our stakeholders is vital.
'With thanks to the tax profession for their views, we can now announce the next steps for how we will simplify the legislative framework and raise standards in the tax advice market. We are also announcing new areas on which we are inviting views, including reforming Income Tax Self-Assessment registration for the self-employed.'
Chancellor responds to OTS report on CGT
As part of its Tax Administration and Maintenance (TAM) Day, the government responded to a two-part review of capital gains tax (CGT) published by the Office of Tax Simplification (OTS).
Earlier this year, following a request from Chancellor Rishi Sunak, the OTS made a series of recommendations for simplifying CGT. These included the integration of the different ways of reporting and paying CGT into the Single Customer Account; extending the reporting and payment deadline for the UK property tax return to 60 days; and formalising the administrative arrangements for the 'real time' CGT service.
In a letter to the OTS, the Chancellor stated that its recommendations 'would require a number of wider policy trade-offs' and therefore require careful thought in regard to their impact on taxpayers.
Mr Sunak also said that the government has accepted five of the OTS's recommendations on the technical and administrative issues with CGT. These will 'offer some practical simplifications for taxpayers', he commented.
ESSENTIAL TAX DATES FOR JANUARY
1 January Due date for payment of corporation tax for period ended 31 March 2021. 14 January Due date for income tax for the CT61 quarter to 31 December 2021. 19 January PAYE, Student loan and CIS deductions are due for the month to 5 January 2022. PAYE quarterly payments are due for small employers for the pay periods 6 October 2021 to 5 January 2022.
31January Deadline for submitting your 2020/21 self assessment return (£100 automatic penalty if your return is late) and the balance of your 2020/21 liability together with the first payment on account for 2021/22 are also due. Capital gains tax payment for 2020/21. Balancing payment – 2020/21 income tax and Class 4 NICs. Class 2 NICs also due.
QUOTE OF THE MONTH
'We are investing in new projects to turn wind power into hydrogen and our net zero strategy is expected to trigger about £90 billion of private sector investment, driving the creation of high wage high skilled jobs as part of our mission to unite and level up across the country.'
Prime Minister Boris Johnson, commenting on new legislation designed to support the UK during the 'green industrial revolution'.
IN THE NEWS
Gender pay gap has seen 'barely any change' over past 25 years, IFS finds A report published by the Institute for Fiscal Studies (IFS) has suggested that the gender pay gap 'has barely shifted' in the past 25 years.
Rising inflation could push family spend up £1,700 a year A typical UK family will spend £1,700 more per year on household costs in 2022, according to a forecast for BBC Panorama.
FCA urges banks to free 'mortgage prisoners' Banks and building societies have been urged to consider changes to lending criteria to help so-called 'mortgage prisoners'.
Third of UK manufacturers struggling with debt and rising costs, research suggests Research carried out by manufacturers' organisation Make UK has suggested that more than a third of manufacturers in the UK are struggling with rising costs, debt and business red tape.
Data requests 'costing businesses thousands each year', research suggests An analysis carried out by the Data Privacy Group has revealed that UK businesses are spending between £72,000 and £336,000 per year handling data subject access requests (DSARs).