The Tax Round: Winter edition 2022

Rayner Essex would like to welcome you to the Winter edition of the Tax Round, where we have handpicked a selection of interesting tax news, insights and updates, that we hope you will enjoy reading, as well as some key diary dates to take note of.

In this Winter edition:

Our tax articles include the following:

• Basis period reform
• The remote workforce – Is your business complying with its tax obligations? 
• Register of overseas entities
• Autumn Statement 2022
• How long should you keep personal tax records?
• When couples separate – Capital Gains Tax charges
• How are personal income tax allowances calculated: A Guide
• New VAT penalties incoming in January 2023

Should you require any further guidance on any of the topics covered in this newsletter, or for any other questions relating to tax and accounting matters, do get in touch with Mark Moore or Marina Trinchese who will be happy to assist you. 

We would also like to take this opportunity to wish all our clients and associates a very Merry Christmas and all the very best in 2023! 
Happy reading!

Basis period reform

Unincorporated businesses (generally sole traders, partnerships, and LLPs) are currently taxed on the profits ending in the tax year, known as the current year basis. Following Finance Act 2022, from 2024/25 all unincorporated businesses will be required to align their basis periods with the tax year. Read more

The Remote workforce: Is your business complying with its tax obligations?

With employees increasingly able to work from almost anywhere in the world, all employers should be reviewing the policies they have in place to ensure that they remain compliant from a UK tax and National Insurance perspective. Businesses should also check that they have complied with any overseas obligations. Read more

Register of overseas entities

Where the overseas entity already owns property in the UK, and it acquired that property after 1 January 1999 in England and Wales, after 8 December 2014 in Scotland, or after 5 September 2022 in Northern Ireland, it must submit an application to register before 1 February 2023.  Read more

Autumn Statement

The third fiscal statement in recent months; the Autumn Statement, was delivered by the government on 17 November 2022, against a backdrop of rising inflation and economic recession.
The Chancellor laid out three core priorities of stability, growth and public services. Read more

How long should you keep personal tax records?

You must keep your tax records for at least five years after the 31 January self-assessment tax return submission deadline each year, if you’re self-employed. This is because anytime during those five years, HMRC may wish to check your records to ensure that you’ve provided accurate information and are paying the correct amount of tax. 
Read more

When couples separate: Capital Gains Tax charges

Separation or divorce is never easy, and tax can be one of the last considerations however couples who are separating or divorcing should be aware of the upcoming changes for capital gains tax which could significantly help their position. Read more

How are personal income tax allowances calculated: A Guide

Personal income tax allowances can be complicated to understand initially. However, getting to grips with your income tax allowance will help you to discover if you’re in the right band and if you’re paying the right amount of tax, saving you money. So, it’s worth taking the time to understand. Read more

New VAT penalties incoming January 2023

Here are the highlights of the changes in the VAT penalty regime coming into effect 1st January 2023.  
The new penalty regime is more nuanced than before, in many ways, it is a fairer approach albeit not so simple as the previous regime. Read more

Key tax dates to be aware of:

Tax Returns
30 December 2022 
Online filing deadline for submitting 2021/22 self-assessment return if you require HMRC to collect any underpaid tax by making an adjustment to your 2023/24 tax code

31 January 2023 
Deadline for submitting your 2021/22 self-assessment tax return (£100 automatic penalty if your return is late). Also, the deadline for paying the balance of your 2021/22 tax liability together with the first payment on account for 2022/23.

Guest Authors for our Spring Tax Round

Should any of our associates be interested in writing content for our next Spring edition of the Tax Round, get in touch with Jenny Tryfonos and we would be happy to discuss your contribution as a guest author.