As usual, the new tax year heralded minor changes to tax and NI rates. However, 2021/22 has also brought with it a number of other significant changes for employers and businesses. Should any of these be showing on your radar?
The long-delayed changes to the off-payroll (IR35) rules took affect on 6 April. Individuals who provide their services through an intermediary, e.g. a company or partnership, in which they own an interest are no longer responsible for deciding if IR35 applies where their client is a medium-sized or large organisation. Extensive guidance on the new rules is available here.
Employers now need to keep their eyes open for a new student loan form which applies to Scottish taxpayers. Employers should have been notified by the issue of a Form SL1 to switch employees with Scottish student loans from Plan 1 to Plan 4 for payroll runs on or after 6 April 2021. For new employees, employers must use the latest “starter checklist” which includes updated questions about student loans. The new form can be downloaded here.
Whilst the new VAT reverse charge for building and construction services has applied since 1 March 2021, the full effects are only starting to hit home as businesses whose VAT quarter ended on 31 March are due to submit their returns at the end of April. HMRC’s technical guide on the scheme, available here, explains how to report and account for the charge.
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