Weekly tax highlights ― 13 December 2021

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 13 December 2021
  • Direct taxes
  • Employer Bulletin: December 2021
  • Purchase of own shares: clearances
  • IHT on gifts
  • Indirect taxes
  • The Customs and Value Added Tax (Managed Transition Procedure) (EU Exit) Regulations 2021, SI 2021/1375
  • Plastic packaging tax updates
  • Administration
  • Finance Bill 2022
  • More...

Weekly tax highlights ― 13 December 2021

Direct taxes

Employer Bulletin: December 2021

HMRC has published its bi-monthly magazine providing the latest information on payroll-related topics for employers and agents.

This edition includes the latest information on PAYE, Brexit transition. Coronavirus (COVID-19) and updates and changes to guidance.

On PAYE, the bulletin highlights include:

  1. increased rates of NIC for health and social care from April 2022 and, from April 2023, the introduction of the Health and Social Care Levy

  2. a reminder to sign up for reporting benefits and expenses in real-time

  3. clarification on when NIC code M can and can’t be used where a person reaches the age of 21

  4. identifying common mistakes to be avoided by employers that may result in an incorrect employer PAYE charge (eg re-using of payroll IDs, not including all employee personal data in each submission in the same format, not setting the ‘Payroll ID changed’ indicator when changing software products, not setting the ‘NIC Refund’ flag correctly on an Earlier Year Update)

  5. a reminder to notify HMRC when companies cease being employers

  6. flagging that the electronic payment deadline of 22 January 2022 falls on a Saturday ― taxpayers are advised to have cleared funds in HMRC’s account by 21 January 2022

  7. a reminder to report the PAYE information in real time when payments are made early over the Christmas period

On Brexit transition, the bulletin highlights that the UK-Swiss convention on Social Security contributions came into force on 1 November.

On coronavirus, the bulletin highlights include:

  1. reminders for taxpayers and

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