Weekly tax highlights ― 13 September 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 September 2021
  • Budget and Government announcements
  • Chancellor announces Autumn Budget of 27 October 2021
  • Government announces increases in NIC and tax on dividends
  • Government announces pension triple lock scrapped for 2022/23
  • Direct taxes
  • Health and Social Care Levy Bill and HMRC guidance
  • Indirect taxes
  • HMRC settlement opportunity for Eclipse Film Partnership members
  • HMRC updates VAT Notice 723A: refunds of UK VAT for non-UK businesses or EU VAT for UK businesses
  • More...

Weekly tax highlights ― 13 September 2021

Budget and Government announcements

Chancellor announces Autumn Budget of 27 October 2021

The Government spending plans are to be set out at the Spending Review on 27 October 2021 alongside an Autumn Budget.

The Chancellor launched the Spending Review 2021 (SR21) on 7 September 2021. It will conclude on 27 October 2021 alongside an Autumn Budget and set out the Government’s spending priorities for the Parliament.

The three-year review will set UK Government departments’ resource and capital budgets for 2022/23 to 2024/25 and the devolved administrations’ block grants for the same period.

The Office for Budget Responsibility (OBR) will prepare an economic and fiscal forecast which will be presented alongside the Autumn Budget and SR21 on 27 October 2021.

HMT has opened a process for the Spending Review and Autumn Budget to allow external stakeholders to submit representations. Representations can be submitted online by 30 September.

Government announces increases in NIC and tax on dividends

To help fund the Government’s social care plans, NIC rates will increase by 1.25% and tax on dividends will increase by 1.25% from April 2022.

The Government will introduce a UK-wide 1.25% health and social care levy based on national insurance contributions (NIC) ringfenced to fund the investment in health and social care.

The levy will be effectively introduced from April 2022, when employer and employee Class 1 NIC and Class 4 NIC will increase by 1.25%. From April 2023, once HMRC’s systems are updated, the 1.25% levy will be formally separated out and will also apply to individuals working above state pension age, and NIC rates will return to their 2021/22 levels. Revenues will be ringfenced for health and social care. Existing NIC reliefs for employers employing people under 21, apprentices under 25, certain veterans and for employers in freeports will apply to the levy.

The levy will be administered by HMRC and collected via PAYE and income tax self assessment and will be legislated for shortly.

The Government will also legislate in the

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