Welcome to the July 2023 Newsletter from Walsh & Co
HMRC recently extended the deadline for making voluntary national insurance contributions (NICs) to 2025. The extension is intended to grant individuals more time to contemplate whether paying voluntary contributions is the right move for them.
Meanwhile, think tank the Resolution Foundation has proffered the notion of a new 'Road Duty' to offset falling Fuel Duty revenues and make sure the transition to net zero 'doesn't leave motorists in older cars bearing the brunt of vehicle taxation'.
HMRC extends deadline for voluntary NICs to April 2025
HMRC recently extended the voluntary national insurance contributions (NICs) deadline until 2025.
Extending the voluntary NICs deadline until 2025 will give people more time to consider whether paying voluntary contributions is right for them, and also ensures individuals do not miss out on the possibility of boosting their State Pension entitlements.
The original deadline was extended to 31 July 2023 earlier this year. HMRC said the new extension allows thousands more people to add extra years to their national insurance record.
HMRC stated that all relevant voluntary NIC payments will be accepted at the rates applicable in 2022/2023 until 5 April 2025.
'People who have worked hard all their lives deserve to receive their State Pension entitlement, and filling gaps in national insurance records can make a real difference,' said Victoria Atkins, Financial Secretary to the Treasury.
'With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost.'
'Road Duty' needed to ensure electric vehicles 'don't put pressure on public finances'
Think tank the Resolution Foundation has called for the government to urgently reform road taxes so that the transition to electric vehicles 'doesn't put pressure on public finances and road congestion'.
The Foundation stated that electric vehicles accounted for one in seven new cars bought in 2022. It said that this is good news for both the planet and motorists as electric vehicles are cleaner and cheaper to run.
However, the think tank suggested that the transition to electric vehicles creates challenges for the government as the lower running costs associated with electric vehicles are partly due to lower taxation relative to petrol and diesel vehicles.
It said that the transition to largely tax-exempt electric vehicles 'is creating a growing fiscal hole in the £32 billion of revenues currently collected via Fuel Duty and Vehicle Excise Duty (VED)'.
Commenting on the matter, Jonny Marshall, Senior Economist at the Resolution Foundation, said: 'The switch from fossil-fuel-powered cars to electric vehicles is a key part of Britain's net zero transition, and it's happening quicker than most people expected. This is good news for the planet and motorists as electric vehicles are cleaner and cheaper to run.
'But unless we modernise road taxation to reflect the cars that are on our streets today and in the future, we risk putting more even pressure on the public finances and our crowded roads.
'We need a new GPS-based 'Road Duty' for electric vehicles to offset falling Fuel Duty revenues and ensure that the net zero transition doesn't leave poorer drivers in older cars bearing the burden of vehicle taxation.'
ESSENTIAL TAX DATES FOR JULY
5 July
Deadline for applying for a PAYE Settlement Agreement for 2022/23.
6 July
Deadline for forms P11D and P11D(b) for 2022/23 to be submitted to HMRC and copies to be issued to employees concerned.
Deadline for employers to report share incentives for 2022/23.
14 July
Due date for income tax for the CT61 period to 30 June 2023.
19 July
Class 1A NICs due for 2022/23.
PAYE, Student loan and CIS deductions due for the month to 5 July 2023.
PAYE quarterly payments are due for small employers for the pay periods 6 April 2023 to 5 July 2023.
31 July
Second payment on account 2022/23 due.
QUOTE OF THE MONTH
'Core inflation is higher in 14 EU countries and interest rates are rising around the world, but the lesson from other countries is that if you stick to your guns, you bring inflation down.'
Chancellor Jeremy Hunt commenting on the Bank of England raising interest rates to 5%, their highest level in 15 years.
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