Important Information relating to new Tax Year starting on Wednesday, 6th of April 2022

HOSPITALITY and CATERING REDUCED RATE VAT

As of 1st April 2022, this has now reverted up to the full Standard Rate of 20% VAT on all sales made.

MARRIAGE ALLOWANCE:

A reminder that if you are married or in a civil partnership you can transfer up to £1,260 of your personal allowance to each other. This can be worth up to £252 in the current Tax Year which ends on Tuesday.

This can also be backdated to 2017/18, so long as you claim by Tuesday.

These are the links to the guidance on the scheme and how to apply for it, about a 2-minute read.

https://www.gov.uk/marriage-allowance

https://www.gov.uk/marriage-allowance/how-to-apply

This can be claimed if one partner is a basic rate taxpayer and the other earns less than their Personal Allowance, currently £12,570 per year.

You must claim this relief yourself and let us know if you do so.

Please note you also need to stop your claim should your circumstances or earnings change.

CLASS 2 NATIONAL INSURANCE (NIC):

This is a tax that provides self-employed people with their entitlement to benefits and State Pension.

Historically, NIC was paid separately but is now merged with your Self-Assessment Income Tax payments.

There is an earnings limit under which you do not need to pay this tax (£6,515 in the current Tax Year to 05/04/2022), but we will ask for NIC to be paid voluntarily, if required, as this is in your best interests and keeps your NI contributions current as cheaply as possible.

Unfortunately, HMRC are removing these payments from your Tax Return without authority if you have earnings under £6,515. Ignore HMRC if they send a tax demand not including this amount and contact us. We will deal with the paperwork for you to have the Class 2 National Insurance reinstated.

If we say you are to pay only Class 2 National Insurance, the amount will be £158.60 for this Tax Year.

Pay it, and do so by 31st January 2023, otherwise you will lose an entire year of contributions.

We believe this will become a major issue and are trying to protect you with this advice.

NUISANCE PHONECALLS

I know many of you suffer from endless nuisance calls from telesales operations, so here is a service you may wish to register for. https://www.tpsonline.org.uk/register/corporate_tps

It is free, called the Corporate Telephone Preference Service (CTPS). We use it and it helped us.