Making tax digital April 2022
Following the launch in 2019, businesses with sales over £85,000 VAT threshold have had to submit their VAT returns digitally, from April 1st 2022 businesses that charge VAT (but are under the £85,000 VAT threshold) must also submit their VAT returns digitally.
Detail on how to sign up for MTD is available on https://www.gov.uk/vat-record-keeping/sign-up-for-making-tax-digital-for-vat
Brexit Updates
Importing goods from the EU – following Brexit, businesses importing goods into Great Britain had 175 days to submit a full customs declaration however this ended on the 1st of January 2022. Businesses must now meet full customs requirements with most having to make declarations and pay the relevant tariffs at the point of import.
Other new rules were also introduced at the beginning of the year, which require ports and border locations to control goods moving across GB and the EU – if the aforementioned valid declaration and customs clearance aren’t in place then they will not be released into circulation and in most scenarios, not able to leave the port.
Upcoming changes:
From 1 July 2022, further changes will be introduced. They include:
- requirements for full safety and security declarations for all imports
- new requirements for Export Health Certificates
- requirements for Phytosanitary Certificates
- physical checks on sanitary and phytosanitary goods at border control posts
To be eligible for zero tariff export to the EU, goods must comply with rules of origin, this means there must be a qualifying level of production in the UK. Further detail can be found on https://www.gov.uk/guidance/brexit-guidance-for-businesses
Increase to dividends tax and NI
From April 2022 there is due to be a 1.25% increase in NI paid by employees, employers and the self employed. Dividend tax will also increase by the same percentage.
