Personal Tax: Budget and Spending Review 2021
Last week’s Budget saw a number of announcements that will impact on individuals, most notably the National Insurance increase to pay for social and health care.
1.25% increase in NICs to fund health and social care
The Prime Minister announced on 7th September that the government will introduce a new 1.25% Levy to provide an extra £12bn a year to support the NHS and social care.
CEST results: will HMRC accept software decision?
HMRC have recently confirmed that they will be bound by CEST results provided the information is accurate and it is used in accordance with their guidance.
“Unavailable” car benefit reduced
Where a company car is “unavailable” for private use for 30 or more consecutive days the benefit is proportionately reduced.
Not all benefits need to be reported on form P11D
Reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties.
Reimburse private fuel by 6 July to avoid fuel benefit
If employees are to avoid paying fuel benefit they need to fully reimburse their employer for the cost of private fuel by 6 July 2021 for the 2020/21 tax year.