Welcome to the October 2021 News Update from Prestige Business Management
October 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
Key Dates Coming Up
P46 Deadline – 2nd November
Forms P46(Car) for quarter ended 5 October (where benefits not payrolled) to reach HMRC by this date.
Employment intermediary’s quarterly report – 5th November
Employment intermediary’s quarterly report (6 July to 5 October) of agency workers paid gross (end user organisation can be classed as the employment intermediary in some circumstances)
PAYE cheque payments due – 19th November
PAYE cheque payments for the month ended 5 November should reach HMRC by this date (22 November for electronic payments)
CIS Return – 19th November
File online Construction industry scheme return for the month ended 5 November
News From B.A.C.A.
During the third Quarter of 2021, we thankfully found ourselves ‘back on the road’ holding physical meetings with our children and face-to-face Chapter Meetings. It is truly wonderful to say goodbye to computer screens and hello to being together. In August we held a Summer Party for our B.A.C.A Children. The ‘big kids’ (most of the Chapter) joined in with the children and ensured they had a lot of fun. Brigantes Chapter held their first Level 1 Intervention when we welcomed our first Hero into the B.A.C.A. family; another child no longer afraid of the world in which they live.
Health and Social Care Levy
Employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance (NI) from April 2022. But from April 2023, National Insurance will return to its current rate, and the extra tax will be collected as a separate Health and Social Care Levy. The increase will see an employee on £20,000 a year pay an extra £130. Someone on £50,000 will pay £505 more. The government says the changes are expected to raise £12bn a year, which will go initially towards easing pressure on the NHS. A proportion will then be moved into the social care system over the next three years.
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Best of Both Worlds Budget Review – 28th October 2021
Mr Sunak announced significant changes to fuel duty and alcohol duties: fuel duty will be frozen at 57.95p per litre for 2022/23, and drinks will be taxed in proportion to their alcohol content, making the system ‘fairer and more conducive to product innovation in response to evolving consumer tastes’. The chancellor announced a forthcoming increase to the earliest age pension savers can access their money from 55 to 57. The Universal Credit taper rate is reduced from 63% to 55%. The government will increase National Living Wage (NLW) for individuals aged 23 and over by 6.6% from 1 April 2022, The government has also accepted the recommendations for the other NMW rates to be increased. Find out more here.
How to Hire a New Employee – 21st October 2021
As the director of a successful start up, you may find your business activities outgrowing what you can deliver. Or perhaps you are building a team for a brand new business venture, soon to open its doors. Whatever the case, follow our easy to use guide for how to hire an employee, to keep the process simple. You normally need to register as an employer with HM Revenue and Customs (HMRC) when you start employing staff, or using subcontractors for construction work. You must register even if you’re only employing yourself, for example as the only director of a limited company. You must register before the first payday. It can take up to 5 working days to get your employer PAYE reference number. You cannot register more than 2 months before you start paying people. Alternatively Prestige BM can handle the registration for you. Read the Guide here.
What Is A Payment On Account? – 11th October 2021
Self-employed workers pay income tax differently to employees, who have PAYE tax deductions made on their regular wage payments, usually once a month to pay for their income tax and National insurance contributions. PAYE stands for pay as you earn. However as a self-employed worker, you are not required to pay tax on your income as it comes in. This means that as a self-employed freelancer or consultant your tax bill is due to be paid by 31st of January. HM Revenue and Customs (HMRC) uses the figures from your self-assessment filed for the previous year, to forecast how much tax you will owe for the upcoming year. From this they will calculate how much you will be due to pay. This is known as a payment in account. These payments on account are due twice a year for self-employed workers, by the deadlines 31st January and 31st July. This is in order to spread the cost of your forthcoming year’s tax bill. Read the guide here.
How to Write a Business Plan – 4th October 2021
There are lots of reasons why you may be asked for a business plan, especially if you are seeking investors, but even if you are not, knowing how to write a business plan is a solid asset to your strategic development. This will help you to organise, gather information, and create a roadmap for your business activities. Firstly a business plan doesn’t have to be lengthy, it should be unique to you and the needs of your business. If your business plan is not intended to be a public facing document, there’s no need to feel intimidated by getting started. Think of it more as a work in progress. A place to record your aims and goals and flesh out how you will act on these as you progress. This is an excellent way to give your business direction and challenge yourself to attain high targets. Read our guide to writing a business plan here.
Client Referral Programme
We pride ourselves in treating our loyal clients with top notch perks and services. Our client referral programme is one way that we like to give back and reward you for doing business with us. You can recommend a friend to receive, up to £100 cash reward, per referral! All you have to do is recommend us – and make sure they tell us you sent them. We’ll do the rest
October Top Tips
In his autumn budget the chancellor announced measures to address the large scale national deficit brought about by the emergency spending throughout the pandemic. Here are our top points for individuals to take away from the budget:
Health and Social Care Levy
The 1.25% Health and Social Care Levy will be introduced from 6 April 2022 via an increase to National Insurance Contributions, before becoming a freestanding levy from 6 April 2023.
Dividend Tax Rates
From 6 April 2022, the dividend tax rates will also be increased by 1.25%. The basic rate dividend tax will increase to 8.75%, the higher rate dividend tax will increase to 33.75% and the additional rate dividend tax will increase to 39.35%. No increases or changes to the main or savings income tax rates.
Capital Gains Tax
No increases to capital gains tax and inheritance tax rates or allowances. No changes to reliefs, including APR and BPR.
The 30 day time limit for reporting capital gains on the sale of residential property and for payment of the tax has been increased to 60 days from Budget day.
The income tax limits and personal allowance will remain at their current level until April 2026.
Stamp Duty Land Tax
The Stamp Duty Land Tax nil rate band for property purchases reverted to £125,000 from 1 October 2021.
The taper rate in Universal Credit will reduce from 63p to 55p and work allowance increased to £500.
National Living Wage
National Living Wage will increase to £9.50 an hour from 6 April 2022.
Prestige Business Management Works for You
At Prestige Business Management we can help your business understand the best solutions for the success of your business. Find out what we can do for you. Call us today on 0203 773 2927.