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Updates for Businesses: 13th September 2021
Please note that this update is correct as of the 13th September 2021. If you need any help or have any questions on the below please contact us on 01256 883 012.
Proposed NIC and Dividend Tax Rates
It is proposed that there will be a 1.25% rise in National Insurance Contributions (NICs) from April 2022 paid by both employers and workers and will then become a separate tax on earned income from 2023 - calculated in the same way as NIC and appearing on an employee's payslip.
Note that the 1.25% increase applies to the Class 4 contributions paid by the self-employed on their profits as well as the Class 1 contributions paid by employees increasing the rates to 10.25% and 13.25%. The employers Class 1 rate will increase from 12.8% to 14.05% however many small businesses are able to set off a £4,000 employment allowance against their employers NIC liability.
Many workers operating through personal service companies to whom the new “off-payroll” working rules apply will also be caught by the proposed measures.
The 1.25% additional levy doesn’t just apply to national insurance contributions, it is proposed that the income from share dividends, earned by those who own shares in companies, will also see a 1.25% tax increase. This would mean that after the £2,000 tax free dividend allowance the rate of tax would be 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for those with income in excess of £150,000 a year.
Details of the proposals are set out in the following document.
UK Transition Help for Businesses
The Department for International Trade (DIT) have launched a new service for exporters. If you are a UK business and you want to sell goods or services abroad, use this service to ask the DIT export support team a question.
You can ask any question for your business, including on:
exporting to new markets
paperwork you need to sell your goods abroad
rules for a specific country where you want to sell services
Click here to ask the export support team a question.
Check How to Import or Export Goods
There is a new government tool check on how to import or export goods, which provides step by step tailored guidance. Use this service to get information about importing and exporting, including:
how to register your business for trading
which licences and certificates you need for your goods
paying the right tax and duty for your goods
how to make declarations for your goods to clear the UK border
which paperwork you need to keep
You will need to know:
where the goods are coming from or going to
the commodity code for the goods
Click here to check how to import or export goods.
If you have any questions on the above please don't hesitate to contact us.