UK Income Tax Returns
UK Non Residents Capital Gains Tax Returns and Resources
Other UK Tax Returns and Resources
UK Business Formations and Company Secretarial Service
From April 2022, all VAT registered businesses will be required to follow MTD rules. This is regardless of taxable turnover. Previously, only those businesses with taxable turnover greater than GBP85,000 needed to follow the rules.
Businesses need to start keeping digital records, using MTD-compatible software, for their first VAT return period, starting on or after 1st April 2022. Businesses will also need to sign up to MTD at least 72 hours before their first MTD return is due.
HM Revenue and Customs announced on 6th January 2022 that a late filing penalty will not be charged if the UK Self Assessment Income Tax Return for 2020/2021 is submitted online by 28th February 2022. The normal due date is 31st January 2022.
In addition, a late payment penalty will not be charged if all UK Self Assessment Tax is either paid in full or a payment plan is set up by 1st April 2022. The normal due date for the payment of tax is 31st January 2022.
HMRC has confirmed that normal tax penalties will be charged if The Return or payment is made after the above mentioned dates.
UK Tax penalties can be reviewed by clicking here to open a new window and review our Penalties page. When you have finished reading, you can close the window and you will be back on this page.
From 27 October 2021, when UK residential property is sold or otherwise disposed of, an online CGT Return may have to be made within 60 days (previously 30 days) of completion. The seller must also calculate any Capital Gain and pay an estimated amount of Capital Gains Tax within this 60 day period. This applies to both UK and non-UK resident individuals. Previously, only non-UK residents had to report the sale of UK residential property. Penalties apply for late Returns, even if the Capital Gain is nil, and for late payment of any tax due, as well as interest.
As regards UK resident individuals, this system applies to second homes, holiday homes, property which is rented out, and property which has been inherited and not used as a main home. It does NOT apply to any property which is used as a main residence, if the gain is within the Capital Gains exempt allowance of GBP12,300, if the property is sold at a loss, or if property is outside the UK.
Non-UK resident individuals must report and pay any UK property and/or land transaction. They must also pay any Capital Gains Tax within 60 days of the transaction. Previously, the tax could be deferred and paid via the Self Assessment Income Tax Return.
The Personal Allowance is frozen at GBP12,570 from April 2021 to 2026.
The Higher rate Income Tax threshold is frozen at GBP50,270 from April 2021 to 2026.
Income Tax, National Insurance and VAT rates are unchanged.
Corporation Tax to rise from 19% to 25% in April 2023. The Corporation Tax rate for Companies with annual profits less than GBP50,000 will stay at 19%, and the rate will taper to 25% at GBP250,000 annual profits.
The stamp duty holiday on property purchases less than GBP500,000 in England and Northern Ireland will be extended to June 2021.
The Budget can be read in full by clicking here. This will open a new window and take you to the UK Government website. When you have finished reading, you can close the window and you will be back on this page.
From 6 April 2020, when UK residential property is sold or otherwise disposed of, an online CGT Return may have to be made within 30 days of completion. The seller must also calculate any Capital Gain and pay an estimated amount of Capital Gains Tax within this 30 day period. This applies to both UK and non-UK resident individuals. Previously, only non-UK residents had to report the sale of UK residential property. Penalties apply for late Returns, even if the Capital Gain is nil, and for late payment of any tax due, as well as interest (UK Tax penalties can be reviewed by clicking here to open a new window. When you have finsished reading, the window can be closed and you will be back on this page).
As regards UK resident individuals, this situation applies to second homes, holiday homes, property which is rented out, and property which has been inherited and not used as a main home. It does NOT apply to property used as a main residence, if the gain is within the Capital Gains exempt allowance of GBP12,300, if the property is sold at a loss, or if the property is outside the UK.
Non-UK resident individuals must report any UK property and/or land transaction. They must also pay any Capital Gains Tax within 30 days of the transaction. Previously, the tax could be deferred and paid via the Self Assessment Income Tax Return.
UK non-resident Companies which own UK property will need to start paying Corporation Tax on their rental profits and Chargeable Gains from 6 April 2020. Previously, they paid Income Tax. Companies will be automatically registered for Corporation Tax if they are non-resident and if they had a UK property business as at 5 April 2020. If they start a UK property business after 6 April 2020, they will need to register for Corporation Tax. Penalties will apply if they do not register, or register late (UK Tax penalties can be reviewed by clicking here to open a new window. When you have finsished reading, the window can be closed and you will be back on this page).
HM Revenue and Customs has agreed that non-UK resident individuals who are forced to stay in the UK for longer than 60 days due to the Coronavirus Pandemic will be seen to be in ‘exceptional circumstances’. Usually, a stay of 60 days or more can mean that an individual becomes a UK resident for tax purposes, but any days due to exceptional circumstances are not included in this period.
HMRC has stated that the introduction of the MTD system will enable individuals and businesses to make tax accounting easier, more efficient, and more accurate. It is envisaged that the individual or business will have a digital tax account which is updated throughout the year.
The MTD system is, at present, only in operation for VAT registered businesses with turnover greater than the VAT registration threshold of GBP85,000. For those businesses with taxable turnover less than GBP85,000, the MTD system is, at present, voluntary, but it is envisaged that they will need to join the scheme for their first VAT Return starting on or after April 2022.
As regards Making Tax Digital (MTD) for Income Tax, it is envisaged that self-employed businesses and Landlords with annual business or property income greater than GBP10,000 will need to comply with the scheme from 6 April 2023. Please note that businesses and Landlords with annual business or property income less than GBP10,000 are exempt from the MTD requirements.
As regards MTD for Corporation Tax, it is envisaged that companies will need to comply with the scheme from 2026.