Statutory rates from April 2021

The Government has announced its proposed rates for statutory maternity, paternity, adoption, parental bereavement and shared parental payments from April 2021. The 2021/22 rate is set to increase from £151.20 to £151.97 per week.

Additionally, the rate of statutory sick pay (SSP) is also set to increase from £95.85 to £96.35 per week. 

The NLW will increase from £8.72 to £8.91 in April 2021 and will be extended to 23 and 24-year-olds for the first time.

HMRC refunds - be scam smart

 

Be aware of copycat HMRC websites and phishing scams. Always type in the full online address www.gov.uk/hmrc to get the correct link for filing your self-assessment return online securely and free of charge.

Also be alert if someone calls, emails or texts claiming to be from HMRC, saying that you can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for information on how to a recognise genuine HMRC contact.

IR35 status – Blanket decision-making

Recent guidance from HMRC has clarified the question of blanket decision-making confirming that this is not allowed. The IR35 status of all contractors must be assessed and determinations need to be made on a case-by-case basis.

According to the new HMRC guidance document published 27th February “The client must take reasonable care when determining whether the worker would have been an employee if they were engaged directly.

“If the client fails to take reasonable care, the responsibility for the deduction of tax, NICs and apprenticeship levy and paying these to HMRC will rest with them.” 

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Making Tax Digital for Corporation tax by 2026

HMRC is consulting on how the principles established for Making Tax Digital for quarterly online filing could be implemented for Corporation tax.

Under its ten year tax administration strategy HMRC said it would consult with stakeholders on Making Tax Digital for corporation tax during autumn 2020, and is now seeking feedback to inform the early-stage design and get a better understanding of the transitional and ongoing costs and benefits for companies of different sizes.

Nearly three million businesses and other taxpayers are within the charge to corporation tax, of which around half incur a corporation tax liability every year.

If the principles and design proposed in this consultation are adopted, they would need to maintain their records of income and expenditure digitally; use Making Tax Digital compatible software to provide quarterly summary updates, and provide an annual corporation tax return using their Making Tax Digital compatible software.

The proposed date to commence a voluntary pilot for Making Tax Digital for corporation tax is April 2024 becoming mandatory from 2026 at the earliest.

Can HMRC come after you personally for IR35 tax?

A recent decision by the First-tier Tribunal, involving a company set up by the BBC presenter Christa Ackroyd, has received a lot of press. Although this case relates to periods prior to the new rules which took effect in April 2017 and so isn’t a test of their effectiveness, the First-tier Tribunal’s decision raises an important question about where the liability for IR35 tax lies.

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ACCA Accredited

Numerico Chartered Certified Accountants is accredited by the ACCA, which means we are wholly composed of Chartered Certified Accountants and covered by ACCA’s Group Consumer Credit Licence under the terms of the Consumer Credit Act 1974.

 

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