KEY GUIDES UPDATED

KEY GUIDES UPDATED

We have reviewed and updated some of our Key Guides. Here is a summary and links to the latest Key Guides:

Key Guide – Investing tax efficiently

Now includes a reference to the Office of Tax Simplification report published in November 2020 that proposed significant changes to capital gains tax.

Key Guide – Making tax digital

Detail now included on what will be required for MTD for corporation tax, scheduled for 2026 at the earliest.
The date for compliance for MTD for VAT for NHS and government departments using the GIANT system is confirmed as April 2022.
We include an example of what would be acceptable manual intervention in a complex accounting system.
The date for MTD for unincorporated businesses and landlords to join MTD for income tax is confirmed at 2023.

Key Guide – Making the most of fringe benefits

Minor updates around the impact of Covid-19.
An additional line explaining the 1% tax percentage increase for each of the CO₂ car emissions brackets in 2021.

Key Guide – Off payroll working

An updated section on the CEST tool now includes the results given by the tool for the year ending November 2020.
We confirm that if you are considered an employee for the duration of a contract, you may withdraw your net salary payment as either salary or dividend.

Key Guide – Starting and selling a business

Entirely updated introduction to recognise the UK’s exit from the EU and Covid-19 restrictions.
Acknowledges new legislation surrounding UK workers in the EU, although business meetings shouldn’t require any extra paperwork.
A warning has been added against potential changes to capital gains tax in the spring Budget which could affect business owners.

Key Guide – Strategies for a high tax environment

We include the latest Office of Budget Responsibility estimate for the 2020/21 UK deficit announced in the November statement.
We updated the personal allowance to include the maximum for 2021/22.
We reference the November Office for Tax Simplification report that proposes significant changes to capital gains tax.
We include the government’s extension of the £1,000,000 capital allowance limit until the December 2021.

Key Guide – Taxation of property

An entirely rewritten introduction refers to the six-year high in housing prices and reminds readers that the stamp duty cut is set to finish at the end of March 2021.
We include the rise in LTT surcharge from 3% to 4% from December 2020.

Key Guide – Tax allowances for business investment

The introduction now includes the further extension to the temporary £1,000,000 annual investment allowance until December 2021.
The AIA example has been updated to reflect the extension.

If you have any queries regarding any of the topics covered by our Key Guides get in touch with Paul Southward of your usual KSK contact.