Anna’s Accountancy Alerts – Week 13 (27th June – 3rd July 2022)

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The official rate of interest for the 2022 to 2023 tax year

HMRC has announced that the official rate of interest will remain at 2% for the 2022 to 2023 tax year. The official rate of interest is used to calculate the Income Tax charge on the benefit of employment-related loans and the taxable benefit of employer-provided living accommodation.

How will this affect you? If you provide employment-related loans or living accommodation to your employees, you will need to know the correct interest rate to apply when you calculate the value of any benefit for 2022 to 2023.

Help your employees understand their Child Benefit entitlements

Do any of your employees have a total taxable income of over £50,000? They may have to pay a tax charge, known as the ‘High Income Child Benefit Charge’ if they or their partner get Child Benefit.

Employees with income over £50,000 and who get, or whose partner gets, Child Benefit should:

  • check their annual income either on their P60(s) or their personal tax account
  • add any taxable benefits, for example, medical insurance, company car, or accommodation.
  • use the child benefit tax calculator to work out how much they may have to pay.
  • register for self-assessment if liable for the High-Income Child Benefit Charge.

Find out more on the Gov website. 

Penalty for a one-off mistake

HMRC will agree to suspend a penalty if you can show that you have put in place a process that will substantially reduce or eliminate a similar error.

For one-off errors such as an omission from a tax return, creating a simple checklist to be used when preparing a future tax return might be enough to get HMRC to agree to a suspension.

Keep up to date with all things Accounting and Finance with my bi-weekly Accountancy Alerts. 

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.