Whitley Stimpson are forewarning employers that they will be required to report and pay income tax and Class 1A National Insurance Contributions (NIC) on benefits in kind through payroll.
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.
If you’re concerned about facing a crippling tax bill that essentially penalises you for being good at your job, you may be able to average them out over the past two or five years, to make your tax burden less bothersome.
The main income tax thresholds and allowances had already been frozen at the 2021-22 levels until 2026 and that has been extended to 6 April 2028.
You need to be ready for MTD and how it will change the way you report income to HMRC. But are you ready for the upcoming changes to basis periods?