ICAEW’s Tax Faculty highlights current issues and reminders for agents including: payments by card reader, voluntary class 2 NIC on 2020/21 tax returns and a new advance assurance online service.

Voluntary class 2 national insurance contributions are unaffected by the Spring Statement changes, but don’t forget that class 4 losses might need recording separately.

National insurance contributions thresholds will rise for employees and the self-employed, together with the employment allowance for small employers. Class 2 NIC will include a zero-rate band.

How will the Exchequer cover the costs of the economic support and stimulus packages caused by the pandemic? A reduction in defence spend, changes to business rates, corporation, capital gains and inheritance taxes; a wealth tax?

The adoption of accrual accounting by governments is gathering momentum. If a government were to adopt accrual accounting now, is the adoption of IPSAS the most sensible option?

Anita Monteith shares her thoughts on HMRC’s approach.

28 October 2020: HMRC has introduced a workaround for those who have been unable to obtain a national insurance number and need to register a self-employment and obtain a Unique Taxpayer Reference (UTR).

17 August: ICAEW joined a recent ICAI webinar on the transition towards accruals accounting covering, amongst other things, lessons it can learn from the UK.

A representation dated 30 May 2023 to a consultation published by HMRC on 15 March 2023.

ICAEW’s response to HMRC’s call for evidence on Income Tax Self Assessment Registration for the Self-employed and Landlords. ICAEW does not support the suggestions for basing the notification requirement on the date an income source starts or a threshold is exceeded or reducing the period after the end of the tax year allowed for notification.

Pushing through proposals to change basis periods ahead of the expansion of Making Tax Digital will cause as many problems as it solves and would be a backwards step for affected businesses, warns ICAEW in its response to HMRC's consultation on aligning basis periods with the tax year. ICAEW has urged the government not to implement to proposals.

In responding to HMRC's call for evidence on timely payment, ICAEW argues that earlier payment of income and corporation tax should not be considered until the economy has recovered and that earlier payment should not be based on in-year estimates without HMRC first demonstrating that they can be a reliable basis for earlier payment.

Employment status guidance for the entertainment industry. The guidance covers film and video workers, TV and radio workers, theatrical workers and musicians.

Comprehensive hub linking to government guidance on National Insurance including rates and categories, National Insurance for the self-employed, and UK National Insurance for those working outside the UK.

Guidance on the treatment of company expenses for self-employed taxation explaining different categories of allowable business expenses.

A list of software suppliers offering simple record keeping applications for cash basis and simplified expenses.

Official guidance for small businesses on who can use cash basis, how to record income and expenses, and information for VAT registered businesses.

HMRC internal manual providing guidance on eligibility, receipts, expenses, and transitional adjustments when entering or leaving the cash basis.

Current rates for Class 2 and Class 4 National Insurance Contributions.

Policy paper describing further measures to be implemented in Finance Bill 2017-18 to prevent the future use of disguised remuneration schemes and introduce new charges on disguised remuneration loans regarding self-employment taxation.