Moore Accountancy Update

 

February is our "admin" and "catching up" month after a busy December and January, focusing on Self Assessment Tax Returns. 

We have sat down as a team and reviewed the positives and negatives of the last quarter, and will be implementing some internal targets and workflows to enable us to deliver a better customer service to our clients. 

We were hit quite badly with staff time off in the period and hopefully our system changes will mean if Covid or any other issues arise, we will be able to be more flexible (I can't believe Covid is affecting us nearly 2 years since it began, to be honest!)

What are your internal improvement plans for the coming year?

The Chancellor's Spring statement will be delivered on Wednesday 23 March, so we will provide an update of any highlights after that date, as well as our March newsletter.


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Moore Accountancy will continue with hybrid working for the forseeable future, as on the whole it works with the team dynamics and their welfare, both mentally and physically.

Emails will continue to be passed to the relevant team member and dealt with as if they were in the office.

If you have missed any of our previous newsletters, then our website has a backlog of them here.

If you’ve already sent us your information and we have submitted your return to HMRC, thank you! You don’t need to do anything else other than ensure you have paid any amounts due. 

If you have not sent us your information (because of Coronavirus) HMRC are now waiving late filing and late payment penalties for one month – giving you extra time, if you need it, to send your information to us so we can complete your tax return and submit it to them.

You will not receive a late filing penalty as long as your tax return is filed online by 28 February.

Interest will still be charged from 1 February on any outstanding liabilities you have not paid. You will not be charged a 5% late payment penalty if you pay your tax or make a Time to Pay arrangement by 1 April.

If you were unable to pay in full by 31 January because of financial difficulties, HMRC may be able to help by arranging a payment plan. Payment plans or payments in full must be in place by midnight on 1 April to avoid a late payment penalty.

If you owe less than £30,000, you may be able to do this online without speaking to them. Go to GOV.UK and search 'HMRC payment plan'.
Please contact us if you need assistance.

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Making Tax Digital for VAT becomes mandatory for all VAT registered businesses from 1 April 2022

Businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using compatible software since April 2019.

From 1 April 2022, all VAT registered businesses must file digitally through Making Tax Digital, regardless of turnover.

We can sign you up to MTD, although you will be responsible for meeting your VAT obligations. Those who do not join Making Tax Digital for VAT may be charged a penalty for failure to do so.

If your business has not signed up to MTD compatible bookkeeping software then please talk to us urgently about how we can help your business comply with the new law.

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ISA Allowances
An obvious tax planning point would be to maximise your ISA allowances for the 2021/22 tax year (still £20,000 each). 

You might also want to consider increasing your pension savings before 5 April 2022 so any unused annual pension allowance is  not lost. For those looking to do some inheritance tax planning it would be a good time to review (or make) your Will.

Pensions
For most taxpayers the maximum pension contribution continues to be £40,000 each tax year. This limit covers both contributions by the individual and by their employer into their pension fund.

Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current year, but then lapses if unused.  Thus, the unused pension allowance for 2018/19 will lapse on 5 April 2022 if unused. 
 

 

19/02/21 - PAYE & NIC deductions for month ended 05/02/22 (January payroll) 

28/02/22 - Corporation tax due for year to 31/05/21

28/02/22 - Deadline for filing 2020/21 tax return if not already filed, due to Covid

19/03/22 - PAYE & NIC deductions for month ended 05/03/22 (February payroll) 

31/03/22 - Corporation tax due for year to 30/06/21

05/04/22 - End of Tax Year

06/04/22 - Start of new Tax Year

19/04/22 - PAYE & NIC deductions for month ended 05/04/22 (March payroll) and issuance of all end of year reports (aside from P11d)


For any businesses struggling with payments, please contact HMRC to see if they will agree a Time To Pay arrangement - https://www.gov.uk/difficulties-paying-hmrc