Welcome to the November 2022 Newsletter from Walsh & Co
Following some eventful weeks in British politics, Prime Minister Liz Truss bowed to Conservative party pressure and resigned on 20 October. However, all eyes remain focused on Westminster following the appointment of Rishi Sunak as the new Prime Minister.
Meanwhile, HMRC has warned that self assessment taxpayers should protect themselves from being targeted by criminals. HMRC received more than 180,000 public referrals of suspicious contact from criminals in the 12 months to August 2022.
Chancellor reverses Mini Budget measures
Chancellor Jeremy Hunt recently announced reversals of most of the measures announced in September's Mini Budget.
The changes were brought forward from the publication of the government's Autumn Statement, which is scheduled for 17 November alongside an economic forecast by the Office for Budget Responsibility (OBR).
Mr Hunt announced that the following tax policies will no longer be taken forward:
- cutting the basic rate of income tax to 19% from April 2023. The basic rate of income tax will remain at 20% indefinitely.
- cutting dividend tax by 1.25 percentage points from April 2023. The 1.25 percentage point increase, which took effect in April 2022, will remain in place.
- repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. The reforms will remain in place.
The changes follow previously announced decisions not to proceed with proposals to remove the additional rate of income tax and to cancel the planned rise in the corporation tax rate.
The Chancellor also revealed that while the Energy Price Guarantee (EPG) and the Energy Bill Relief Scheme will continue as previously announced until April, they will be reviewed for beyond that date. A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023.
Commenting on the changes, Martin McTague, Chair of the Federation of Small Businesses (FSB), said: 'The Chancellor is right to highlight the need for stability, following all of the political turmoil and chopping and changing which has made it virtually impossible for businesses to plan and make investment decisions.
'Small businesses want to be growing and investing but will need economic conditions to improve and sky-high operating costs brought down in order for them to be front and centre of future economic recovery.
'There are significant recessionary pressures causing severe problems for small firms and the people who work for them – while the Chancellor has focused on reassuring markets… the government must combine this with pro-growth measures that support the real economy.'
Self assessment taxpayers could be a target for fraudsters, HMRC warns
Self assessment taxpayers who are thinking about their annual tax returns for the 2021/22 tax year should protect themselves from being targeted by criminals, HMRC has warned.
In the 12 months to August 2022, HMRC responded to more than 180,000 public referrals of suspicious contact from fraudsters, of which almost 81,000 were scams offering fake tax rebates.
Criminals claiming to be from HMRC have targeted taxpayers by email, text and phone, with their communications ranging from offering bogus tax rebates to threatening arrest for tax evasion. However, HMRC says it would never call threatening arrest.
Individuals who are contacted by someone claiming to be from HMRC in a way that arouses suspicion are advised to take their time and check the scams advice on GOV.UK.
Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'Never let yourself be rushed. If someone contacts you saying they're from HMRC wanting you to urgently transfer money or give personal information, be on your guard.
'Tax scams come in many forms. Some threaten immediate arrest for tax evasion, others offer a rebate. Contacts like these should set alarm bells ringing.'
ESSENTIAL TAX DATES FOR NOVEMBER
2 November
Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 October 2022.
19 November
PAYE, Student loan and CIS deductions are due for the month to 5 November 2022.
QUOTE OF THE MONTH
'Businesses are crying out for an end to the political turmoil and a focus on remedying the economy, supporting small firms through the hard winter ahead.'
Martin McTague, National Chair of the Federation of Small Businesses (FSB), commenting on the resignation of Prime Minister Liz Truss.
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