Welcome to the October 2021 Newsletter from Certax Accounting
Welcome to the October 2021 Newsletter from Certax Accounting The introduction of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) has been delayed for a year, HMRC recently announced. The delay has been implemented in response to the challenges many businesses face as a result of the coronavirus (COVID-19) pandemic. Meanwhile, the Institute of Directors (IoD) has called on the government to use the Autumn Budget on 27 October to reduce the planned level of business tax rises. The business group has also urged the government to help spur business investment. Making Tax Digital for Income Tax Self Assessment delayed for a year The government has delayed the introduction of Making Tax Digital (MTD) for Income Tax Self Assessment (MTD for ITSA) for a year, HMRC has announced. The government says it has made the move in recognition of the challenges faced by many UK businesses as the country emerges from the pandemic. It will now introduce MTD for ITSA in the tax year beginning in April 2024, a year later than planned. It says the later start for MTD for ITSA gives those required to join more time to prepare and for HMRC to deliver a robust service, with additional time for customer testing in the pilot. Lucy Frazer, Financial Secretary to the Treasury, said: 'The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity. 'But we recognise that, as we emerge from the pandemic, it's critical that everyone has enough time to prepare for the change, which is why we're giving people an extra year to do so. 'We remain firmly committed to MTD and building a tax system fit for the 21st century.' IoD urges government to reduce planned level of business tax rises The Institute of Directors (IoD) is urging the government to use the upcoming Budget to reduce the planned level of business tax rises. The IoD believes that the Office for Budget Responsibility (OBR) will revise its GDP growth forecasts up for 2021, potentially resulting in stronger tax receipts. It stated that as such, the need for government borrowing has lessened, giving the government 'more room for manoeuvre than previously expected'. The business group is calling on the government to conduct and publish an assessment of the rise in employers' national insurance and to commit to taking account of the results of this assessment before the end of the 2022-23 transition period to the new Health and Social Care Levy system. 'When the national insurance increases were announced, we were surprised about the lack of analysis as to the effects of these decisions,' said Kitty Ussher, Chief Economist at the IoD. 'Parliament is being asked to agree legislation with significantly negative economic and business impacts, without having the evidence before them of the extent of that impact.' ESSENTIAL TAX DATES FOR OCTOBER 1 October Due date for payment of Corporation Tax for period ended 31 December 2020. 5 October Deadline for notifying HMRC of new sources of taxable income or gains or liability to the High Income Child Benefit Charge for 2020/21 if no tax return has been issued. 14 October Due date for income tax for the CT61 quarter to 30 September 2021. 19 October Tax and NICs due under a 2020/21 PAYE Settlement Agreement. PAYE, Student loan and CIS deductions are due for the month to 5 October 2021. PAYE quarterly payments are due for small employers for the pay periods 6 July 2021 to 5 October 2021. 31 October Deadline for submitting 'paper' 2020/21 self assessment returns. QUOTE OF THE MONTH 'At the Spending Review later this year, I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.' Chancellor Rishi Sunak commenting on the upcoming Spending Review, which will be presented alongside the Autumn Budget on 27 October. IN THE NEWS Government announces plans to make requesting flexible working a day one right UK workers could get more choice over when and where they work under new proposals to make the right to request flexible working a day one entitlement. British Business Bank provided £81.5 billion of COVID-19 support COVID-19 emergency finance schemes offered £81.5 billion of finance to almost 1.7 million businesses through the British Business Bank (BBB) during the last financial year. CBI survey finds three quarters of firms worried about labour shortages A survey carried out by the CBI has revealed that three quarters of UK businesses are concerned about the impact of labour shortages on competitiveness. OTS says changing date of tax year end would be beneficial Adopting a tax year which is either aligned with the calendar year or with a calendar month-end would have clear benefits, according to a review from the Office of Tax Simplification (OTS). Higher taxes and lower business investment 'not a plan for growth', warns CBI The UK government faces big choices this autumn if it wants to stimulate economic growth, the Confederation of British Industry (CBI) has said.