Latest News from Suttle & Co

VAT REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES

This is a major change to the way VAT is collected in the building and construction industry.
It comes into effect on 1 March 2021 and means the customer receiving the service will have to pay the VAT due to HMRC instead of paying the supplier.

For more information: https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

MAJOR CHANGE TO CAPITAL GAINS TAX

From 6 April 2020, if you’re a UK resident and sell a residential property in the UK you’ll have 60 days to tell HMRC and pay any Capital Gains Tax owed.
If you don’t tell HMRC about any Capital Gains Tax within 60 days of completion, you may be sent a penalty as well as having to pay interest on what you owe - so it’s really important that everyone involved in the sale of a residential property fully understands these changes.

For more information: https://www.gov.uk/government/news/get-ready-for-changes-to-capital-gains-tax-payment-for-uk-property-sales

WORKPLACE PENSION - minimum contribution rates – 3% for employers and 5% for employees.

MINIMUM WAGE – NEW RATE FROM APRIL 2022
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.

23 and over £9.50
21 to 22 £9.18
18 to 20 £6.83
Under 18 £4.81
Apprentice £4.81

MTD – MAKING TAX DIGITAL – HMRC are working on a completely new system whereby businesses report their profits quarterly, rather than annually. These reports have to be submitted online via compliant software. HMRC will not be providing this software.

April 2022 – All VAT Registered businesses regardless of turnover will report quarterly for VAT purposes only.

April 2024 – All self employed businesses and people renting out property with income of over £10,000 have to start reporting quarterly.

For more information: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

National Insurance Increase from April 2022

From 6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25 percentage points. This will be spent on the NHS, health and social care in the UK.

The increase will apply to:
• Class 1 (paid by employees)
• Class 4 (paid by self-employed)
• secondary Class 1, 1A and 1B (paid by employers)

The increase will not apply if you are over the State Pension age.