Chancellor Rishi Sunak has announced today, December 21st, new funding of £1bn in response to the rise in Covid cases. The funding supports primarily the hospitality and leisure sectors, as a surge in cases has been affecting trade.
The £1bn funding package is split as follows:
- Grants of £6,000 per business premises in hospitality and leisure (for around 200,000 businesses that will be eligible)
- More than £100m discretionary funding for local authorities to support other businesses
- £30m overall added to the Culture Recovery Fund to support culture
- The Statutory Sick Pay Rebate Scheme to cover the cost of Statutory Sick Pay for Covid-related absences for small and medium-sized employers across the UK
As of December 21st, the chancellor has not yet reintroduced the furlough scheme, which protected workers’ incomes as well as covered labour costs between April 2020 and September 2021. Calls for additional measures in addition to the above have come from all sides and could be introduced over the next few days or weeks.
A look at what lies ahead in 2022
As of April 1st 2022, the national wage will increase by 6.6% to £9.50 an hour:
The national wage will rise as follows for workers aged 22 and under:
- Apprentices: increase from £4.30 to £4.81
- 16-17 years old: increase from £4.62 to £4.81
- 18-20 years old: increase from £6.56 to £6.83
- 21-22 years old: increase from £8.36 to £9.18
As of April 2022 around 400,000 retail, hospitality and leisure properties will be eligible for the new, temporary, £1.7bn of business rates relief. The business rates multiplier will be frozen from 2022/23 which will lower business rates bills by 3%.
From April 6th 2022, National Insurance contributions will increase by 1.25% for both employees and employers. Employers pay NICs on earnings above £8,840 per year. The employer National Insurance rate is currently 13.8%. From April 2022, the rate of NICs employers pay will also increase by 1.25%. HMRC has requested a message be included on payslips, wherever possible, for the duration of the 2022/2023 tax year that reads “1.25% uplift in NICs funds NHS, health and social care”.
Tax and Accounting Deadlines between January and June 2022
January 2022
- January 1st 2022: Corporation Tax payment for 31st March 2021 year ends
- January 7th 2022: VAT return submission and payment (online): month-end or quarter 30th November 2021
- January 21st 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th January 2022 and quarter-end 5th January 2022
- January 31st 2022: Online Self Assessment Tax Return 2020-21 and amendments to 2019-20 tax returns
- January 31st 2022: IR35: amend or correct 2020-21 deemed payment on employer return and pay any balance of PAYE/NIC
- January 31st 2022: National Insurance: notify of liability to Class 2 NI where self-employment commenced in 2020-21
February 2022
- February 1st 2022: Corporation Tax payment for 30th April 2021 year ends
- February 7th 2022: VAT return submission and payment (online): month-end or quarter 31st December 2021
- February 14th: National Insurance Form CA72A (deferral) for the employed
- February 19th: CIS return and payments made to subcontractors in the month to 5th February 2022
- February 22nd 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th February 2022 and quarter-end 5th February 2022
- February 28th 2022: Corporation Tax returns for 28th February 2021 year ends
March 2022
- March 1st 2022: Corporation Tax payment for 31st May 2021 year ends
- March 7th 2022: VAT return submission and payment online for month-end or quarter 31 January 2022
- March 19th: CIS return and payments made to subcontractors in the month to 5th March 2022
- March 22nd 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th of March 2022
- March 31st 2022: Corporation Tax returns for 31st March 2021 year ends
April 2022
- April 1st 2022: Corporation Tax payment for 30th June 2021 year ends
- April 5th: The tax year 2021-22 ends
- April 5th: P46car electronic for the quarter to 5 April 2022
- April 5th: National Insurance deadline to pay voluntary Class 2 or Class 3 NI for 2015-16
- April 6th: 2022-23 tax year begins
- April 7th 2022: VAT return submission and payment online for month-end or quarter 28 February 2022
- April 19th: CIS return and payments made to subcontractors in the month to 5th of April 2022
- April 22nd 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th of April 2022
- April 30th 2022: Corporation Tax returns for 30th April 2021 year ends
May 2022
- May 1st 2022: Corporation Tax payment for 31st of July 2021 year ends
- May 1st 2022: VAT fuel scale charge where new rates apply from the next VAT period beginning on or after 1st May 2022 (NEW)
- May 7th 2022: VAT return submission and payment online for month-end or quarter 31st March 2022
- May 20th 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th of May 2022
- May 31st 2022: VAT annual accounting to stagger VAT return and balancing payment
- May 31st 2022: P60 issue to employees
June 2022
- June 1st 2022: Corporation Tax payment for 31st of August 2021 year ends
- June 1st 2022: Advisory fuel rates for company car drivers: new rates published
- June 7th 2022: VAT return submission and payment online for month-end or quarter 30th April 2022
- June 20th 2022: PAYE, NIC and CIS payment (electronic) for month-end 5th of June 2022
- June 30th 2022: VAT partial exemption with annual adjustment due this quarter for 31st March stagger
- June 30th 2022: Corporation Tax returns for 30th June 2021 year ends
Do you have questions about the recent announcement from the Chancellor? Any concerns on how to manage your taxes and business in 2022?
Have a look at our services and feel free to get in touch with us.
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