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Due to the challenges of the current economic environment, the UK government announced in December 2022 that the Making Tax Digital (MTD) rollout for Income Tax Self-Assessment (ITSA) has been postponed for 2 years.

Previously, people responsible for submitting Self-Assessment Tax returns were expected to switch to the Making Tax Digital service from April 2024 if they earned over £10,000 from self-employment in a tax year. Now, this will not be mandatory until April 2026.

This means that self-employed individuals, including landlords, will have more time than expected to prepare for the transition to MTD for ITSA. Here’s a summary of what’s happening with MTD and other changes you should know about due to this postponement.

Despite several tumultuous weeks towards the end of 2022, the Corporation Tax increase will be going ahead in April 2023 as announced back in 2021.

Small companies should already be aware of the incoming tax rate changes, but it’s important to take the associated company rule changes into account, too.

The rate of Corporation Tax applied and when it needs to be paid will depend on the company’s profits and how many associated companies it has. This will affect more companies than just the rate change, so company owners shouldn’t let themselves be caught off guard.

This blog explains the basics of the rule changes and how they could affect your company.

Since 1996, the number of couples living together without getting married has increased by 144% – with 3.6 million couples cohabiting by 2021. Despite living together for years and often acquiring property and having children, unmarried cohabitants don’t have the same legal protections as people who are married or in civil partnerships.

This led the Women and Equalities Committee to call for family law reforms, publishing a report in August 2022 that proposed changes to improve financial protections for cohabitants and their children if their relationship ends.

Despite agreeing that cohabitation laws are outdated, the UK government made the controversial move of rejecting the reform proposals, stating that they need to finish reforming marriage and divorce laws before they can consider cohabitation.

Lower-paid workers will be welcoming the National Living Wage uplift coming later this year, but these increased costs could mean that employers can no longer afford to employ their workers.

Just as the cost of living crisis is severely impacting many households across the UK, it’s also hitting UK businesses. While some may reduce their employment costs by scaling down their number of staff, this isn’t always possible – meaning some businesses may end up shutting down completely.

Here’s a summary of recent changes affecting employment costs in 2023, and how these are likely to impact employers and their employees.

Local councils charge business rates on properties used for non-domestic purposes, from shops and restaurants to offices and factories. This tax is based on the ‘rateable values’ of the different property types, which were last valued in 2017.

The Valuation Office Agency (VOA) has therefore been revaluing business rates in England and Wales, with the updates coming into effect from 1st April 2023.

The new valuations will reflect the changes in the property market since the previous revaluation, meaning some businesses are likely to see their business rates increase – though others may see no change, or even a reduction.

Fortunately, to ease the burden of new business rates in 2023, the government also announced a package of support measures in the Autumn Statement 2022.

Here’s what you need to know about business rates revaluation and relief.

The delayed Autumn Statement 2022, which was announced on 17th November, has prompted accusations of the government imposing a ‘stealth tax’ by way of fiscal drag.

The changes to tax rules and continued threshold freezes that were revealed by Chancellor Jeremy Hunt are expected to affect millions of people over the next 5–6 years.

Here’s what you need to know about fiscal drag, the primary taxes affected by the one-two punch of inflation and allowance freezes, and what you can do to reduce the financial squeeze.