The Chancellor Rishi Sunak presented his third Budget on 27 October 2021. In his speech he set out the plans to “build back better” with ambitions to level up and reduce regional inequality.
In this brief guide we look at the ‘Domestic Reverse Charge’ (DRC) that is to be introduced for VAT on construction services from 1 March 2021. This was announced in a consultation in early 2018, with the intention that it shouldbe introduced on 1 October 2019. It was delayed for a year because of Brexit, then delayed another 5 months because of the pandemic. As far as we can tell, Brexit and the pandemic will still be with us on 1 March 2021, but we have to be prepared for the new rules to be introduced without a third delay.
Since the onset of the coronavirus pandemic, many businesses and individuals have benefited from a range of schemes, including furlough grants for staff unable to work, grants for the self-employed, deferral of VAT and Income Tax payments and cheap, government-backed business loans.
The High Income Child Benefit charge applies to a taxpayer who has income over £50,000 in a tax year where either they or their partner, if they have one, are in receipt of Child Benefit for the year.
The current regime for taxing employer provided cars (commonly referred to as company cars) is intended:
• to encourage manufacturers to produce cars which are more environmentally friendly and
• to give employee drivers and their employers a tax incentive to choose more fuel-efficient and environmentally friendly vehicles.
We set out below the main areas of importance.
Please do not hesitate to contact us if you require further information.