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TAX NEWS

Tax news in brief

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Published: 03 Mar 2021 Update History

Highlights from the broader tax news week ending 3 March, which includes: publication date of Finance Bill 2021, updated guidance on NICs and benefits in kind, latest fuel advisory rates and HMRC webinars for agents on off-payroll working and penalties for enabling tax.

Finance Bill 2021

Finance Bill 2021 will be published on 11 March 2021. The written statement announcing the publication of the Bill confirms that the Government remains committed to legislating those measures published in draft on 21 July and 12 November 2020, subject to confirmation at the Budget. Budget resolutions made under the Provisional Collection of Taxes Act 1968 will be made following the Budget on 3 March for those measures that are expected to come into effect ahead of Finance Bill Royal Assent.

Updated guidance on NIC and benefits in kind

The 2021/22 edition of HMRC’s guidance on Class 1a national insurance contributions (NIC) on benefits in kind (CWG5) was published on 22 February. The CWG5 is updated annually and provides information on calculating NIC liabilities on benefits in kind, as well as on exemptions, reporting and paying NIC. It also provides guidance on termination payments and sporting testimonial payments. Access the 2021/22 CWG5.

Latest advisory fuel rates published

HMRC has published the first quarterly advisory fuel rates for 2021. The rates are used by organisations in calculating reimbursements for fuel costs and business travel in company cars. From 1 March rates for petrol engines 1401cc to 2000cc return to 12 pence per mile, after being reduced to 11 pence per mile from 1 December 2020 to 28 February 2021. Other changes see a penny increase in rates for petrol engines over 2000cc and for diesel engines less than 2000cc. Companies can use previous rates for up to one month after the date the new rates apply.

HMRC support for agents on off-paryroll working

Ahead of the introduction of the new off-payroll working regime (IR35) in April, HMRC is running a series of free webinars for agents providing information concerning: contractors; international matters; status determinations and disagreements; engagement and fee-payer responsibilities. Some spaces are still available on live webinars in March, and recordings of the webinars are available. Find out more.

HMRC webinar on penalties for enabling tax avoidance

On 9 March (11:45), HMRC is hosting a live webinar offering an overview of the legislation detailing penalties for enables of defeated tax avoidance. The free session is aimed at tax agents and will outline the circumstances under which they might find themselves liable for a penalty. Register to attend.

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