VAT reverse charge and the flat rate scheme
There are special VAT rules for building contractors and sub-contractors that came into effect on 1 March 2021. The new rules make the supply of most construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge only applies to supplies of specified construction services to other businesses in the construction sector.
This means that since 1 March 2021, sub-contractors no longer add VAT to their supplies to most building customers,
Vehicle benefit charges from April 2022
The vehicle benefit charges were updated following the Chancellor’s Budget speech. Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. The car fuel benefit charge will increase in 2022-2 to £25,300 (from £24,600). The fuel benefit is not applicable when the employee pays for all their private fuel.
The standard
More time to pay Capital Gains Tax
The Capital Gains Tax (CGT) reporting and payment date for UK residents that sell a residential property changed with effect from 6 April 2020. This change meant that any CGT due on the sale of a residential property needed to be reported and a payment on account of any CGT due made within 30 days of the completion of the transaction.
In the Autumn Budget, the Chancellor announced that the deadline for making CGT returns and associated payments on account would be changed from 30 days after
Self-employed basis period reforms
The government announced back in September that the introduction of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) has been delayed by one year until April 2024. There had been widespread concerns on the speed of the MTD for ITSA rollout and the delay was widely welcomed.
In tandem with this announcement, the government also announced that proposals for Income Tax basis period reform would also be delayed until the 2024-25 tax year with 2023-24 being a transitional year. The
Improvements to the apprenticeship system
As part of the Autumn Budget and Spending Review 2021, the government has confirmed that it will continue to meet 95% of the apprenticeship training costs for employers who do not pay the Apprenticeship Levy and it will deliver several apprenticeship system improvements for all employers. These include:
an enhanced recruitment service by May 2022 for small and medium-sized enterprises (SMEs), helping them hire new apprentices
supporting flexible apprenticeship training models to ensure that