Owner-Managed Businesses

Weekly tax highlights ― 18 April 2022

Produced by Tolley
  • 26 Apr 2022 19:01

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

  • Weekly tax highlights ― 18 April 2022
  • Direct taxes
  • Signing up for MTD for Income Tax
  • Indirect taxes
  • Checking which packaging is subject to PPT
  • SI 2022/439 Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2022
  • International
  • OECD peer reviews on tax dispute resolution
  • Advisory Group for Global Dialogue on Tax Matters
  • CIOT responds to GloBE Rules Implementation Framework
  • More...

Weekly tax highlights ― 18 April 2022

Direct taxes

Signing up for MTD for Income Tax

HMRC has updated its ‘Using Making Tax Digital for Income Tax’ guidance to expand the section ‘Who can use Making Tax Digital for Income Tax’ to cover circumstances where users are not yet able to sign up.

The guidance notes that taxpayers can sign up voluntarily and start using the service if they are:

  1. a UK resident

  2. registered for self assessment with returns and payments that are up to date

  3. a sole trader with income from one business, or a landlord who rents out UK property

The service is not yet available, however, for those who need to report:

  1. income from any other sources, or

  2. an income tax charge ― for example, high income child benefit charges or certain pension tax charges

Indirect taxes

Checking which packaging is subject to PPT

Where a plastic packaging component is made from multiple materials, but contains more plastic by weight than any other substance, it will be classed as a plastic packaging component for the purposes of the plastic packaging tax (PPT).

HMRC’s updated guidance confirms that, where the component includes an adhesive, the business will need to check whether the adhesive is plastic. If the adhesive does not meet the definition of plastic, it must not be treated as ‘any other substance’ from the ‘other substance’ list when working out if the component contains more plastic.

SI 2022/439 Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2022

The Regulations ensure that households will not lose

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