Business Round-up

The government has published a range of tax documents and consultations designed to help modernise the UK tax system.

More than 30 policy updates, consultations and documents have been published in an effort to give tax professionals more time to scrutinise them. These documents, which would traditionally have been published at the Budget, include a business rates review interim report and a call for evidence on the tax administration framework.

A consultation on the potential changes to Air Passenger Duty (APD) has been published, seeking views on supporting the UK's commitment to net-zero emissions by 2050 by increasing the number of international distance bands.

Additionally, documents on cutting inheritance tax (IHT) red tape for more than 200,000 estates have also been published.

Many of the announcements form a key part of the government's wider ten-year plan to build a trusted, modern tax system.

'These measures will help us to upgrade and digitise the UK tax system, tackle tax avoidance and fraud, among other things,' said Jesse Norman, Financial Secretary to the Treasury.

'By grouping them together, we want to give Members of Parliament, tax professionals and other stakeholders a better opportunity to scrutinise them.'
The tax documents can be found here.

Tax Tip

Forms P11D and reviewing your benefits-in-kind policy

Forms P11D, which report benefits-in-kind for employees for the year to 5 April 2021, are due for submission to HMRC by 6 July 2021. Employer-only Class 1A national insurance contributions (NICs) of 13.8% are also payable on the benefits by 19 July 2021.

Benefits-in-kind are generally valued at the cost to the employer of providing the benefit. However, special rules apply to the valuation of some benefits such as cars where the taxable amount will generally be based on a range of up to 37% of the manufacturer’s list price (including accessories) of the car. The taxable benefit depends upon the carbon dioxide emissions of the car. There is also a separate benefit-in-kind for the provision of fuel for private motoring.

Now would be a good time to start gathering together the information to complete the forms P11D and to review your benefits-in-kind policy.

We can help you complete the forms P11D and review your benefits-in-kind policy. Please get in touch for more information.