Anna’s Accountancy Alerts – Week 5 (29th –April – 5th May 2024)

Anna's Accountancy Alerts

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Simplifying the reporting of Income Tax and National Insurance contributions on benefits in kind

On 16 January 2024 the government announced that it will mandate employers to report and collect Income Tax and Class 1A National Insurance contributions on employment benefits through payroll software from 6 April 2026. This means that the 2025 to 2026 tax year will be the last year that employers will be able to file P11Ds and P11D(b)s with HMRC in most cases. From this date, tax on employment benefits will be collected in real time and not through tax codes in arrears. Class 1A National Insurance contributions will also be collected in real time for each pay period rather than at the end of the year.

MTD for ITSA for sole traders and landlords

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter via compatible software.

In the guidance, HMRC stated that MTD for ITSA will be introduced in two phases:

  • from April 2026 for those with qualifying income over £50,000
  • from April 2027 for those with qualifying income over £30,000.

Internet link: GOV.UK

These changes will allow fathers and partners to take their leave in non-consecutive blocks. Currently, only one block of leave can be taken, which can be either one or two weeks. The changes will remove this barrier by enabling fathers to take two non-consecutive weeks of leave. 

Help for households

Help with the cost of living is available to millions of households. As an employer, we are asking you to share this information with your employees.

Help for Households offers over 40 schemes of support. There is help with childcare costs, travel costs and more. There is also additional information on how to save money on energy bills.

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.