Problems with HMRC’s online P11D forms emerge
Employers must ensure that their P11D are filed by 6 July 2022. However, a problem has emerged with HMRC’s online forms. What’s going on?
The Institute of Chartered Accountants in England & Wales (ICAEW) has warned that employers that have provided their employees with electric vehicles that there are issues with HMRC’s automatic calculation of the taxable amount. The taxable amount for a company car is based on the list price and a relevant percentage that increases with higher emissions.
The issue appears to be that HMRC’s computation is applying a rate of 37% (the maximum) instead of the 1% that should apply to electric vehicles for 2021/22. Employers should urge employees to check their tax codes to ensure excessive amounts are not included. Unfortunately, the only way to remove the error is to call HMRC. There appears to be no issue where a paper return is filed, so it may be worth submitting paper forms for potentially affected employees this time round – but time is running out to do this.
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Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
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The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?