• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
        Learning Hub data privacy policy
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        F2f student events
        Key dates
        Book distribution
        Timetables
        FAE elective information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Access support/reasonable accommodation
        Extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Committee reports & sample papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2022
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
        Diversity and Inclusion Committee
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • In business
        Networking and special interest groups
        Articles
      • Overseas members
        Home
        Key supports
        Tax for returning Irish members
        Networks and people
      • Public sector
        Public sector news
        Public sector presentations
      • Member benefits
        Member benefits
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        Institute Technical content
        TaxSource Total
        The Educational Requirements for the Audit Qualification
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

Making Tax Digital

☰
  • Home
  • Tools and resources
  • News
  • Legislation and other guidance
  • Related reading
  • Home/
  • Knowledge centre/
  • Tax/
  • Making Tax Digital/
  • Home

Making Tax Digital

Making Tax Digital (“MTD”) is the most fundamental change to the administration of the UK tax system since the introduction of self-assessment. As implementation of the project is rolled out and the legislation is developed and enacted, the Institute will support its members. These pages will be updated with news, developments and resources to help you get ready for this fundamental change. MTD commences with VAT from April 2019. The project is expected to be rolled out to other taxes, starting with income tax.

read more

Latest news

Tax UK
(?)

New tax and financial year, new rules

The new tax year 2022/23 begins later this week on 6 April 2022 after the new financial year commenced last week on 1 April 2022. 5 April 2022 is  the deadline to claim certain allowances and reliefs such as claims for the marriage allowance which are still in time for the tax year 2017/18 but only up to 5 April 2022. Let’s take a look at the key tax changes which take effect as a result. Income Tax and National Insurance Contributions The headline changes which will apply from 6 April 2022 are the 1.25 percent increase in National Insurance Contributions (“NICs”) which was announced in September 2021. Class 1, (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs are all affected. From 6 April 2022, the rate of income tax on dividends will also increase by 1.25 percent from 7.5 percent to 8.75 percent for basic rate taxpayers. Higher rate taxpayers will pay 33.75 percent up from 32.5 percent and additional rate taxpayers will pay 39.35 percent, up from 38.1 percent. In the recent Spring Statement, the Chancellor announced that from 6 July 2022, the primary threshold for Class 1 national insurance contributions (“NICs”) by employees will increase from £9,880 in 2022/23 to £12,570 for the remainder of 2022/23. The lower profits limit for Class 4 NICs is set to increase to £11,908 from the same date. From 6 April 2022, self-employed individuals with profits between the small profits threshold (£6,725 for 2022/23) and the lower profits limit will not pay Class 2 NICs, however such individuals will be able to continue to build NICs credits for the purposes of contributory state benefits. Also from 6 April 2022, the Employment Allowance (which allows eligible employers to reduce their annual Employer’s Class 1 NICs liability) will increase by £1,000 to £5,000. There is no change to the personal allowance which remains at £12,570, nor to the other rates of income tax and their bands but the Chancellor did announce during the Spring Statement that he intends to reduce the 20 percent income tax rate to 19 percent in 2024, subject to certain fiscal conditions being met. Making Tax Digital (“MTD”) for VAT From their first VAT period starting on or after 1 April 2022, VAT registered businesses (including the self-employed and landlords) with turnover below the £85,000 VAT registration threshold are required to operate MTD for VAT. This means that the following two conditions must be met:- They must keep their records digitally (for VAT purposes only) They must file their VAT returns using MTD compatible software. However, some businesses may be exempt from MTD for VAT under the digital exclusion exemption. For those that are not exempt, HMRC is not providing a soft-landing for either element of the MTD for VAT requirements. Chartered Accountants Ireland has written to the Financial Secretary to the Treasury setting out the case for providing a soft landing in respect of this major change. Red diesel changes From 1 April 2022, rebated diesel (known as red diesel) and rebated biofuels are no longer allowed to be used as they were previously. This means that businesses in the construction industry can no longer use red diesel for most purposes. From 1 April 2022 you can only use rebated fuel for the following specific purposes: For vehicles and machinery used in agriculture, horticulture, fish farming and forestry (includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads) To propel passenger, freight or maintenance vehicles designed to run on rail tracks For heating and electricity generation in non-commercial premises. This includes the heating of homes and buildings such as places of worship, hospitals and townhalls; off-grid power generation; and non-propulsion uses on permanently moored houseboats For maintaining community amateur sports clubs and golf courses As fuel for all marine craft refuelling and operating in the UK, except for propelling private pleasure craft in Northern Ireland For powering the machinery of travelling fairs and circuses. A HMRC webinar setting out the changes is available to view here:- https://www.youtube.com/watch?v=hwdiKDMgM6s Miscellaneous A number of new taxes also came into operation this month including the Plastic Packaging Tax and the Residential Property Developer Tax. The Plastic Packaging Tax came into force on 1 April 2022 and is charged at a rate of £200 per tonne. If a business has manufactured or imported 10 or more tonnes of finished plastic packaging components within the last 12 months, or will do so in the next 30 days, it must register with HMRC for this tax. This applies to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30 percent recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight. The Residential Property Developer Tax (“RPDT”), which also applies from 1 April 2022, is charged on profits of companies which arise from residential property development and which are recognised in accounting periods ending on or 1 April 2022, but only if profits from that activity exceed £25 million per year (this allowance can be allocated by groups between its companies). Profits in excess of the allowance are taxed at a rate of 4 percent, with the tax due required to be reported and paid as part of the company’s Corporation Tax return. The legislation for this was enacted in Finance Act 2022 with the initial guidance which was available now published in the new RPDT manual. This was developed by HMRC in conjunction with stakeholders and provides further clarifications on how RPDT will operate, including a number of examples. Other notable changes from 1 April 2022 include increases in the National Minimum Wage and Living wage hourly rates, the requirement imposed on certain large businesses to notify HMRC of an uncertain tax treatment and the extension to various corporation tax creative sector reliefs. From 6 April 2022, there is also a new requirement that companies must meet to be able to reclaim Construction Industry Scheme (“CIS”) deductions. This requires contractors who wish to reclaim CIS deductions via their Employer Payment Summary (“EPS”) to include details of their Corporation Tax Unique Taxpayer Reference number on the EPS. HMRC has also issued guidance on its new power to publish information about tax avoidance schemes. Following Royal Assent to Finance Act 2022, Section 86 provides HMRC with a power to publish information about tax avoidance schemes and about persons suspected to be promoters of those schemes. The guidance explains when details may be published, the type of information that may be published and where it may be published, together with the process for making representations about whether the information should be published. HMRC’s new powers and penalties to tackle the form of tax evasion known as electronic sales suppression (“ESS”) came into effect when Finance Act 2022 received Royal Assent on 24 February 2022. ESS is where a business manipulates electronic sales records to hide or reduce the value of individual transactions. This reduces the recorded turnover of the business and its tax liabilities, while providing an apparently credible and compliant audit trail. The new powers aim to ensure businesses pay the right amount of tax and also to level the playing field for compliant businesses by tackling the possession, making, supply and promotion of ESS tools (ESS software and hardware). The penalty is a fine of up to £50,000. There are also new ESS-specific information powers. These powers allow HMRC to obtain details of those involved in the supply chain of ESS tools and to understand more about the tools. Safeguards for taxpayers include giving businesses a 30-day grace period to remove the software to avoid a penalty and the right to appeal against any penalties.

Apr 04, 2022
READ MORE
Tax UK
(?)

Read the latest Agent Forum and Digital Services updates from HMRC, 4 April 2022

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. HMRC’s latest update on the Agent Forum is also available in addition to the February 2022 HMRC Digital Services update which features the latest on Making Tax Digital.

Apr 04, 2022
READ MORE
Tax UK
(?)

Talking Points webinars latest schedule – book now, 4 April 2022

HMRC’s latest schedule of webinars is now available for booking. Spaces are limited, so take a look now and save your place. If you have any questions, please send them to team.agentengagement@hmrc.gov.uk prior to the webinar, including the title of the webinar in the ‘Subject’ line of your email. HMRC will answer as many as possible on the day. Declaring your grants on your Company Tax Return (CT600): register here This webinar provides an overview of how to report coronavirus support payments and grants on a company tax return, what happens if you’ve claimed too much and records you need to keep. Making Tax Digital for VAT: register here This webinar will provide some of the basics of Making Tax Digital for VAT. This will include what’s changing, using software and keeping digital records, plus an introduction to penalty reform. From April 2022, these requirements will apply to all VAT-registered businesses, to include those that have a turnover below the VAT threshold. Introduction to Plastic Packaging Tax: register here Find out about the new Plastic Packaging Tax being introduced in April 2022 and what you need to do now if you produce or import plastic packaging Plastic Packaging Tax – admin and technical aspects: register here In this webinar you’ll find more detail about the administrative and technical aspects of the new Plastic Packaging Tax  

Apr 04, 2022
READ MORE
12345678910...
Contact the tax team

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.