New VAT late-filing penalties
All VAT returns must now be submitted digitally using MTD compatible software (unless the business has an exemption) so the VAT penalties have been revised to fit with this new regime.
New VAT late-payment penalties
In addition to the new penalties for late VAT returns there is also a new system of penalties for late paid VAT.
Recognising capital losses
The annual capital gains exemption (currently £12,300) will be cut to £6,000 on 6 April 2023 and £3,000 in April 2024.
MTD for income tax delayed again
Making tax digital for income tax self-assessment (MTD ITSA) was set to take effect from 6 April 2024. This has been postponed until 6 April 2026.
Coping with an HMRC nudge
Marketing companies know that personal letters sent directly to customers are more powerful than broadcast or printed adverts. HMRC is using this technique to recover unpaid tax.
Largest ever NMW rise
The national minimum wage (NMW) and national living wage (NLW) rates are due to rise significantly for pay periods starting on and after 1 April 2023.