Further rates for 2021/22 confirmed
In addition to confirming the basic rate band and personal allowance for 2021/22, the Treasury has also confirmed the cash equivalents for certain vehicle-related benefits in kind to help employers prepare. What do you need to know?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
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Forming a partnership to split your income
You’ve been doing some freelance work and what started out as a modest side hustle is now taking off. You’ll need to pay tax on the profits but is it possible to reduce it by splitting the income with your spouse?
Uncertainty
By this point in the year, the tax and NI rates, bands and thresholds are usually well-established. However, the delayed Budget has meant that the position for 2021/22 is unclear despite the new tax year being only a few weeks away. There have been some confirmations though if you know where to look. The latest relate to company cars and vans.
Cars. The taxable amount where an employee is provided with a company car depends on a “relevant percentage” (based on its emissions) multiplied by the list price. However, where the employer pays for any private fuel the taxable amount is the relevant percentage multiplied by a fixed figure, and for 2021/22 this has now been confirmed as £24,600 (an increase from £24,500).
Vans. The taxable amount for a company van does not depend on emissions. A benefit only arises where the van is used for private journeys. This is then a fixed amount, which for 2021/22 has been confirmed as £3,500 (up slightly from £3,490). Where fuel is provided for private journeys, the fixed taxable amount is increasing to £669 (from £666).
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