6 April 2021 - 5 April 2022
We are writing to request the details to complete your personal tax return for the year ended 5 April 2022.
If you require a schedule which lists the values used to prepare your 2020/21 tax return, please contact us.
Please also ensure you provide us with details of any assets acquired or disposed of (including gifts) in the period 6 April 2021 to 5 April 2022, if applicable.
The online filing deadline for your tax return is 31 January 2023. We recommend early completion of your tax return to ensure you have sufficient time to plan for any tax liability arising. We would therefore appreciate it if every effort could be made to provide us with the relevant information as soon as possible, preferably no later than 30 September 2022.
Residential Property Sales and Capital Gains reporting
From 6 April 2020 HMRC introduced a 30-day reporting and capital gains tax payment deadline for all residential property sales. This applies to any residential property sale that results in a taxable capital gain, for example rental properties or second homes. It will generally not apply to the sale of your main home. This has since been extended to 60 days.
Please let us know as soon as possible if you are disposing of a property and we can advise if this will apply. If the capital gains tax return is not submitted on time HMRC are able to charge late filing penalties.
Health & Social Care levy for the 2022/23 tax year
HMRC have introduced a new Heath and Social Care Levy which comes into effect for the 2022/23 tax year. This measure provides for a temporary 1.25% increase to both the main and additional rates of Class 1, Class 1A, Class 1B and Class 4 National Insurance contributions for the 2022 to 2023 tax year and revenue raised will go directly to support the NHS and equivalent bodies across the UK. From April 2023 onwards, the National Insurance contributions rates will decrease back to 2021 to 2022 tax year levels and will be replaced by a new 1.25% Health and Social Care Levy where the revenue will be ringfenced to support UK health and social care bodies.
Individuals above State Pension age will not be affected by the temporary increase to National Insurance contributions for the 2022/23 tax year but will be liable to pay the levy from April 2023.
Covid-19 Self-Employment Income Support Scheme (SEISS) Grants
SEISS grant awards are subject to Income Tax and Class 4 National Insurance contributions and will need declaring on your tax return.
The SEISS grants are taxable in the tax year in which they are received. So, grants 4 and 5, if received, are taxable in the 2021/22 tax year and they should be reported, in full, on your 2021/22 Self-Assessment tax return. Please notify us of any grant income received during this tax year.
HMRC will include a box on the 2021/22 Self-Assessment tax return form, which we will need to complete.
If you have any questions or concerns regarding your tax affairs, please do not hesitate to contact the partner or manager you usually deal with.
Evolve Tax & Accountancy LLP