Weekly tax highlights ― 8 February 2021

Produced by Tolley
Weekly tax highlights ― 8 February 2021

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

  • Weekly tax highlights ― 8 February 2021
  • Brexit
  • HMRC guidance
  • Direct taxes
  • Order setting 2021/22 income tax allowances and limits
  • Rates and thresholds for employers for 2021 to 2022
  • Self-employment income support scheme (SEISS) updates
  • Coronavirus job retention scheme (CJRS): updates on no right of appeal and non-monetary benefits
  • Regulations ensure self-isolation support payments treated as self-employed income
  • GAAR Advisory Panel opinion of 16 December 2020: artificial repayment of a loan or advance to a participator
  • More...

In the ever-fast-moving world of tax announcements and developments, this note pulls together some of the key changes announced this week. Our commentary will be updated in due course to reflect these latest developments.

Did you know that you can set up your own personal alerts to let you receive all of our news stories on a daily or weekly basis? Go to your ‘Alerts’ icon at the top right corner of your screen and amend your personal settings to subscribe to regular updates.

Brexit

HMRC guidance

Following the end of the Brexit transition / implementation period at 11pm on 31 December 2020 (IP completion day), the Government has been re-issuing a number of Brexit webpages and guidance documents, collating existing stakeholder and sectoral guidance on legal and practical changes taking effect from 1 January 2021. These include:

  1. Excise Notice 196 ― excise goods (registration and approval)

  2. guidance on returning goods to the UK

  3. Guidance on moving excise goods from Great Britain to Northern Ireland by parcel

  4. Notices made under the Taxation (Cross-border Trade) Act 2018

  5. Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018 on the changes from the end of the Brexit transition period

Direct taxes

Order setting 2021/22 income tax allowances and limits

An Order (SI 2021/111) has been made setting income tax allowances and limits for the tax year 2021/22.

Certain allowances and limits are increased by reference to the consumer prices index, but require an Order to set them out for the relevant year. This Order sets the limits and allowances that will have effect for the tax year 2021/22.

This Order increases:

  1. the basic rate limit to £37,700

  2. the personal allowance to £12,570

  3. the blind person’s allowance to £2,520

  4. the minimum amount for tax reductions for married couples and civil partners to £3,530

  5. the amount by which the married couple’s allowance is calculated to £9,125

  6. the adjusted net income limit for the married couple’s allowance to £30,400

Rates and thresholds for employers for 2021 to 2022

HMRC

Popular documents