COVID-19 support grants
HMRC has increased the current late payment interest rate applied to the main taxes and duties to 3% from 2.75% with effect from 21 February 2022. This is the second rate rise due to consecutive rises in the Bank of England base rate.
Hospitality, leisure and accommodation businesses can still apply for one-off cash grants of up to £6,000 through the Omicron Hospitality and Leisure Grant scheme.
The Omicron Hospitality and Leisure Grant (OHLG) scheme provides businesses in the hospitality, leisure and accommodation sectors with one-off grants of up to £6,000 per premise.
To provide further support to other businesses, the Additional Restrictions Grant (ARG) scheme provides councils with funding they can allocate at their discretion to businesses most in need, such as personal care businesses and supply firms.
Read more here.
Taxpayers take advantage of extra time
More than one million taxpayers filed their late tax returns in February – taking advantage of the extra time to complete their self assessment without facing a penalty.
HMRC has given customers until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty. Interest has been applied to all outstanding balances since 1 February.
Remember there is a new super deduction that means 130% capital allowances can be claimed on expenditure on new equipment purchases between 1 April 2021 and 31 March 2023.
- This is only available to companies subject to corporation tax, not individuals, partnerships or LLPs.
- ‘Super deduction’ includes all new plant and machinery that ordinarily qualifies for the 18% main pool rate of writing down allowances
- There is no limit on the amount of capital investment that can qualify for the super deduction.
Read more here.