23 March 2021 was dubbed ‘tax day’ when the government announced more than 30 tax updates separate from the budget. Cambridge Finance offers a summary of these updates that may affect its delegates.
Taxation is part of life, none of us like it but it necessary, hopefully, this update and the ten-year plan that had been set in motion will make the system clearer and simpler to use. Any change is feared but it is time our taxation system got a facelift and let’s face it with all the pandemic costs to cover, taxes need to raise more funds.
- Air passenger duty consultation on proposed changes published. The proposed changes include cutting tax on domestic flights and hopes to support UK’s commitment to zero emissions by 2050, this involves a distance-related tax.
- Call for evidence on the tax administration framework, aimed at creating a trusted, modern tax admin system that is simpler and meets taxpayer’s needs.
- Making Tax Digital (MTD) Smaller VAT registered businesses from April 2022 and for Income Tax self-assessment from April 2023
- Investment in digital infrastructure of £95million
- Announcement of exploration into more frequent payment of income tax for the self-employed and corporation tax
- Interim report on governments fundamental review of business rates, final report to be published in the autumn.
- A tightening of tax rules surrounding second homes being registered as holiday lets.
- Inheritance tax red tape cut, over 90% of non-taxpaying estates will no longer have to complete inheritance tax forms when probate is required (from January 2022).
The announcement also included a committment to clamping down on non-compliance:
- Clamping down on promoters of tax avoidance including HMRC’s ability to freeze or secure a promoters assets so that penalties due are secured.
- Tackling disguised remuneration tax avoidance
- Off-payroll working rules
- Residential Property Developer Tax – consultation to be published, this tax will be introduced in 2022 to help pay for the costs of cladding remediation.
- A review of the taxation of trusts is to be published
- Simplification of the land and property VAT rules – call for evidence due soon
Be prepared for upcoming changes with a Cambridge Finance course, ranging from our introduction to property development & investment course to our Cambridge Finance certificate in real estate financial modelling