Businesses involved in the import or export of goods to or from the UK will have made their customs declarations via a system known as CHIEF (Customs Handling of Import and Export Freight). This system is soon to be replaced with the new Customs Declaration Service (CDS).
If your business does not use an agent to deal with the declarations for you then you must ensure that you sign up for the new CDS in good time to allow for the declarations to continue smoothly. From 1 October 2022 the change will apply to all import declarations and from 1 April 2023 all export declarations must be on the CDS.
CDS is operating now and you do not have to wait until the end dates for CHIEF to move, with HMRC recommending early adoption. Details on how to register are available on the HMRC website at Customs Declaration Service. If you use an agent to deal with declarations you should check whether they have moved over to CDS.
We are here to help, so please contact us if you have any queries or wish to discuss any of the above.
Guidance is now available for employers wishing to take advantage of the National Insurance holiday for employers of veterans.
Introduced on 6 April 2021, employers who hire former members of the UK regular armed forces during the first year of their civilian employment will not have to pay employers National Insurance contributions for up to 12 months. Employers will be able to claim this relief through their RTI submissions from 6 April 2022 and any earnings of qualifying veterans hired from 6 April 2021 will be eligible for retrospective relief.
The new guidance explains the qualifying rules and claims process for both the 2021/22 and 2022/23 tax years and employers are encouraged to study this guidance to see if they can claim the relief.
Employers will need to update their starter procedures to ensure sufficient records are maintained and provide this to any third-party payroll provider.
We are here to help so please contact us if you wish to discuss any of the above.
HMRC have released draft legislation in respect of the upcoming changes to how self-employed individuals and landlords will need to report their income under Making Tax Digital (MTD) for Income Tax from 6 April 2024.
From April 2024, MTD for Income Tax requires those who have income over £10,000 from self-employment or rental income in a tax year to report their income and expenses to HMRC on a quarterly basis before then also filing a year end return. These new submissions will replace the current self-assessment return.
The draft legislation states that the quarterly returns for those with income between £10,000 and the VAT registration threshold (currently £85,000) will, in additional to the income, only need to include a single entry to cover all expenses, whereas for those with income higher than the VAT registration threshold more detailed expenses will be needed.
Under MTD for Income Tax, taxpayers will also be required to maintain digital records whether this be via spreadsheets or a software provider. Although MTD is still over a year away it is something that taxpayers need to start considering to ensure a smooth transition especially if paper records are still being used.
The legislation is still in draft and we will continue to monitor any developments. If you have any queries or wish to discuss any of the above then please contact us.
A new environmental charge was introduced by the Government on 1 April 2022 called the “Plastic Packaging Tax” (PPT) to encourage the reduction in use of plastics and promote the use of recycled plastics.
The charge is £200 per tonne and applies to plastic packaging produced in or imported into the UK. Plastic packaging is defined as packaging that is predominantly plastic by weight. The charge will not apply to any plastic packaging that contains at least 30% recycled plastic.
Businesses which manufacture or import more than 10 tonnes of plastic packaging in a 12 month period, or which will manufacture more than 10 tonnes in the following 30 days are required to register with HMRC for the PPT. There are some reliefs from the tax available for plastic packaging that is:
The first quarterly return is due for the period 1 April 2022 to 30 June 2022, however, the PPT does not apply anything before 31 March 2022 and therefore the limit of 10 tonnes applies to this three month period only. As each quarter passes the relevant period to assess will increase; after 31 March 2023 the 12 month test will be applied at the end of each month.
HMRC have published guidance on the PPT on their website here.
If you have questions or would like further information please contact us.