Company cars perk on the wane
The number of people driving company cars continues to decline, according to the latest figures from HMRC. Provisional figures from the 2019/20 tax year suggest only 800,000 people claimed this benefit on their tax returns, down from 870,000 and 900,000 in the preceding two tax years. Changes to the way this benefit-in-kind is taxed now benefit those driving lower emission cars. The figures show this has reduced the number of company cars using diesel fuel.
Tax deadline looms
The clock is ticking for 12 million people who need to file their self-assessment tax return by 31 January 2022. This will relate to earnings from April 2020 to April 2021, and outstanding tax owed is also due on this date. Those filing late face a £100 penalty. HMRC advises those new to self-assessment to register for the service at least 20 days in advance of the deadline.
Making Tax Digital delay on income tax
Plans to shift the self-assessment and income tax system onto an entirely digital basis have been delayed again. This gives welcome additional time for businesses to adapt but creates further uncertainty about implementation dates. This latest postponement means the launch date is now six years later than the original proposal of 2018, pushing the programme back to April 2024.
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