Income tax roundup

Here’s our guide to the changes for 2021, including a personal allowance freeze and Covid-related exemptions Income tax rates remain unchanged but personal allowance will be frozen for five years Personal allowance will rise to £12,570 from April 2021. It will subsequently be frozen at this level until April 2026 and no longer adjusted for inflation. The income tax higher …

New VAT penalty regime

Reform of existing regime with a £200 points-based late submission penalty. The reforms will come into effect as follows: VAT taxpayers for accounting periods beginning on or after 1 April 2022 Income Tax Self Assessment (ITSA) Return for taxpayers with business or property income over £10,000 per year (who are required to submit digital quarterly updates through Making Tax Digital for ITSA) …

Corporation tax to rise – marginal rate relief returns

Small profit and main rates of CT make a come-back, along with marginal rate relief  The chancellor announced the return of the small profit rate and main rate of corporation tax from April 2023. The applicable corporation tax rates will be 19% and 25%. Businesses with profits of £50,000 or below would still only have to pay 19% under small …