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OTS Publish report exploring a change to the UK tax year end date

The Office of Tax Simplification (OTS) have published an analysis of the potential benefits, costs and implications of a change to the 5 April tax year end date (TYED).

In June, the OTS published a scoping document which outlined that it would be completing a review on the potential for moving the TYED. The OTS confirmed that it would be assessing two alternative dates, 31 March and 31 December. The review was not a call for evidence, however the CIPP policy team had the opportunity to meet with the project team to discuss the potential implications for payroll professionals.

The final report published on 15 September 2021 does not recommend a move in tax year end date, instead it focuses on the benefits, costs and implications of any potential change. The OTS suggest the simplest design would be to align to the calendar year, with an end date of 31 December, creating tangible benefits for international data exchange. However, they recognise the scale of a move to 31 March would be substantially lower.

The report identifies that there would be significant change required for any transition in TYED. The report describes the impact on the HMRC, DWP and state pension systems, alongside PAYE systems. The OTS suggest that any transition would reduce capacity for other changes to be made at the same time and suggest any timeline to move the TYED should come after the creation of the single customer account.

The OTS do make one recommendation in the report. Their research suggested that many self-employed taxpayers and landlords were informally using 31 March as a cut off date. The OTS recommended that the government formalise arrangements to allow taxpayers to use 31 March cut off, instead of 5 April in relation to the calculation of profits from self-employed and property income.

It is now with the Government to review the findings of the OTS and take any next steps on this topic. The CIPP will continue to keep you up to date with any future changes.

info@burgesshodgson.co.uk

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General Practitioners, Locums and Non-GP Partners – PAY Transparency

In the 2020 GMS contract deal, agreements were made to publicly declare the names and earnings of any GP or non-GP Partner with NHS earnings exceeding £150,000 in a bid to improve pay transparency within the NHS. The rules were to apply for the 2019/20 year onwards.

Guidance has now been published on how to calculate NHS earnings and how to submit the relevant details:

https://www.england.nhs.uk/wp-content/uploads/2021/10/B0939-general-practice-pay-transparency-guidance-v1.pdf

If you are a GP or non-GP Partner and had NHS earnings in excess of £150,000 in 2019/20, you have until 12 November 2021 to submit the self-declaration.

In future years, you will have until the following 30 April after the year end (13 months to prepare and declare).

If you feel as though you may be affected by the Pay Transparency regulations and would like any assistance, please do not hesitate to contact the Burgess Hodgson medical team who would be happy to assist:

Kenton May: kcm@burgesshodgson.co.uk

Simon Bailey: sjb@burgesshodgson.co.uk

Guy Vine: gv@burgesshodgson.co.uk

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Making Tax Digital for Income Tax and the change in the basis period delayed by a year

The introduction of Making Tax Digital (MTD) for income tax and the proposed change in the basis period will be postponed by a year until 2024.

For more information please visit: HMRC policy paper, Customer costs and benefits for Making Tax Digital

Please contact us if you have any questions: info@burgesshodgson.co.uk

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National Pension Tracing Day

On 31st October 2021 the clocks will go back giving us an extra hour which can be utilised to trace lost pensions.

Read more about the UK’s first National Pension Tracing Day here:

https://www.cipp.org.uk/resources/news/31-october-set-to-be-national-pension-tracing-day.html

 

If you have any questions please contact info@burgesshodgson.co.uk

 

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New Health and Social Care Tax

Posted: 07 September 2021

The Prime Minister has outlined a health and social care tax to pay for reforms.

The new tax starts as a 1.25% rise in National Insurance (NI) from April 2022, becoming a separate tax on earned income from 2023.

View more on this here: https://www.gov.uk/government/publications/build-back-better-our-plan-for-health-and-social-care

If you have any questions please contact us at info@burgesshodgson.co.uk

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Coronavirus Job Retention Scheme will be ending on September 2021

Please be reminded that the Coronavirus Job Retention Scheme (CJRS) will be ending on 30 September 2021.

Employers should consider and consult with employees still currently on furlough regarding return to work from 1 October 2021.

Click here to download or view our PDF for more information.

 

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Congratulations Emily Fairburn

Huge congratulations to Emily Fairburn on passing her exams and now being a ‘Chartered Governance Professional’!

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Changes to Right to Work Checks from July 2021

Posted: 13 August 2021

The process has changed for completing right to work checks on EU, EEA and Swiss citizens.

Employers may have staff who they checked for right to work based on EU passports or ID cards. Since the deadline for applications to the EU settlement scheme on the 30 June 2021 this is no longer relevant and employers should check their status online to prove their right to work. If they do not have the right because they have not applied for settled status, they may be able to submit a late application.

You do not need to retrospectively check the status of any EU, EEA or Swiss citizens employed before 1 July 2021.

For more information visit: https://www.gov.uk/government/publications/employer-bulletin-august-2021/employer-bulletin-august-2021#workchecks

If you have any questions regarding this change please contact us: info@burgesshodgson.co.uk

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Congratulations David Hunt

Last updated on August 18th, 2021 at 01:46 pm

David joined Burgess Hodgson as a Junior Tax trainee in 2019 having achieved a 1st class degree in Psychology from Leeds University.

David helps manage a portfolio of clients including sole traders and High Net Worth Individuals, dealing with both personal and corporation tax returns. He also assists the tax Partners with company valuations and tax compliance in respect of employee share schemes and investments in the Enterprise Investment Scheme.

We applaud success within the firm especially during these challenging times and huge congratulations go to David who passed his Advanced Technical paper with the highest mark in the UK and has been awarded by the Chartered Institution of Taxation the ‘Ronald Ison Medal’.

The Senior Partner, Steve Sutton was joined with other Partners, Ken Jones, Fiona Wilkes and Mike Horne on Friday and presented David with a cheque in acknowledgement of this impressive achievement.

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Self-Employment Income Support Scheme – Fifth Grant

HMRC have announced they will be contacting eligible taxpayers, either by email or through the online service, to notify them that they can apply for the fifth Self-Employment Income Support Scheme (SEISS) grant to cover the period 1 May 2021 – 30 September 2021.

Applications for the grant are open now, with the deadline for claims being 30 September 2021. Applications will be different from previous grants as the level of support depends on the reduction in turnover between 2020/21 and 2019/20.

For further information please see the following link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Currently no announcements concerning a sixth grant have been made, so the fifth grant may be the final one available.

Burgess Hodgson will be contacting clients that we believe are eligible for the fifth grant, and can review your turnover calculations. If you have any queries in the meantime please contact your usual tax adviser or email tax@burgesshodgson.co.uk

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