Diary Of Main Tax Events March/April 2021
Date What’s Due 1 March 2021 Corporation tax payment for year to 31/5/20 (unless quarterly instalments apply) 15 March 2021 February Furlough claims must be made by this date 19 March 2021 PAYE & NIC deductions, and CIS return and tax, for month to 5/03/21 (due 22/03 if you pay electronically) 1 April 2021 Corporation […]
Don’t Lose Your 2020/21 Personal Allowance
For every £2 that your adjusted net income exceeds £100,000 the £12,500 personal allowance is reduced by £1. Pension contributions and Gift Aid donations can help to reduce adjusted net income and save tax at an effective rate of 60%.
Advisory Fuel Rate For Company Cars
These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 March 2021.
Freeport Zones
Following the UK’s departure from the EU, the government intend to establish new Freeports as a means to boost trade, jobs and investment across areas of the UK.
Plastic Packaging Tax
This is a new tax which will apply to UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK.
Extension To Exemption For Home Office Expenses
The current Income Tax and National Insurance contributions exemption for employer reimbursed expenses that cover the cost of relevant home-office equipment has been extended to 5 April 2022.
Personal Tax Allowances And Thresholds
The personal allowance will rise to £12,570 for 2021/2022 and the higher rate threshold will rise to £50,270. After that, both thresholds will remain frozen until 2025/2026.
Super Deduction For New Plant And Machinery
A temporary increase to capital allowances available to companies investing new plant and machinery on or after 1 April 2021 up to and including 31 March 2023. During the period of super deduction, companies can claim 130% on most new plant and machinery expenditure if it would ordinarily qualify for 18% writing down allowances.
Corporation Tax Changes
From April 2023, the main rate of UK Corporation Tax will increase from 19% to 25% on profits of more than £250,000. The main rate of corporation tax for small profits of less than £50,000 will remain at 19%. There will also be marginal relief for limited companies with profits between £50,000 and £250,000, so that they pay less than the main rate of 25%.
Extended Loss Carry Back For Businesses
A temporary extension to the loss carry back rules for trading losses for both companies and unincorporated businesses was announced. For accounting periods ending between 1 April 2020 and 31 March 2022, losses can be carried back three years rather than the current one year rule now.
