PMA Business Services Ltd

Autumn Budget 2021

The Chancellor made no new announcements in respect of tax penalties, compliance and administration in his Autumn Budget 2021. 

Discovery Assessments

With retrospective effect: 

  • Finance Bill 2022 will include amendments to the Discovery provisions to ensure that HMRC can use its powers of discovery to recover certain tax charges, including the High-Income Child Benefit Charge (HICBC), Gift Aid donation-related charges and some pension charges. 

All of the following changes had been pre-announced prior the Budget.

 Making Tax Digital

  • Making Tax Digital for Income Tax delayed until April 2024.

Changes to basis periods

From April 2024

  • Legislation will be included in Finance Bill 2022 to simplify the basis period rules for the self-employed and partners.
  • This will now include a more flexible use of overlap relief in the transition year and provisions to reduce the impact of transition profits on allowances and benefits.
  • See Consultation: Income Tax Basis Period reform

Tax Penalties

From 1 April 2022

  • New late submission and late payment penalties for VAT apply for VAT registered businesses.