OPT-IN TO VAT DEFERRAL NEW PAYMENT SCHEME BY 31 MARCH 2021

VAT-registered firms were not required to make VAT payments during this deferral period, and initially had until 31 March 2021 to pay any liabilities.Around 1.8 million taxpayers missed the 2019/20 deadline for self-assessment on 31 January 2021, according to figures published by HMRC.The tax authority revealed 1,790,368 people failed to beat the midnight deadline, almost double last year’s total of 958,296.HMRC attributed the spike in the number of personal taxpayers missing this year’s midnight deadline – about 15% of the 12.14m returns due – to the impact of COVID-19.

PERSONAL ALLOWANCE AND HIGHER-RATE THRESHOLD TO INCREASE 0.5%

A 0.5% increase to the personal allowance and higher-rate of income tax will be in place from 6 April 2021, according to the Treasury.Both thresholds will increase in line with the Consumer Prices Index (CPI) rate of inflation figure for September 2020, which was 0.5%.This means the personal allowance will rise from £12,500 to £12,570 and be in effect throughout the UK for 2021/22.

   
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