The Chancellor must act at the Spring Statement or risk the UK
economy drifting backwards to low growth, warns the Confederation of British
Industry (CBI).
The Spring Statement will take place on 23 March 2022. The CBI
has set out a range of policies it says are aimed at sparking growth
via business investment.
These include a permanent investment incentive to replace the
super-deduction. The business group says this will boost business investment by
£40 billion a year by 2026.
It also wants to see the Apprenticeship Levy turned into a Skills
Challenge Fund. In addition, the government should tackle high energy prices by
improving home energy efficiency through new grants for decarbonised heating
systems.
CBI Director General Tony Danker said:
'Business backs the
Chancellor's desire to foster a renewed culture of enterprise and deliver a
more ambitious growth rate. His vision set out only last week to leverage the
tax and regulatory system to promote business investment, upskill Britain's
workforce and stimulate innovation is the right recipe for future success.
'Faced with a record tax
burden, a cost-of-living crisis, wage pressures and the end of the
super-deduction, firms will be looking to the Spring Statement for a clear
signal that the government's ambition will be matched by action.
'That is the time to act if
we want to push the economy onto a higher growth trajectory. It takes time for
policies to kick in and deliver results, so there's no point in waiting until
an Autumn Budget.'
Internet links: CBI
website GOV.UK
Coronavirus SSP Rebate Scheme set to close on
17 March
The Statutory Sick Pay Rebate Scheme (SSPRS) will close on
17 March
2022.
The SSPRS was reintroduced by the government on
21 December
2021 for employers with fewer than 250 employees.
The maximum claim per employee is two weeks at the statutory sick
pay (SSP) rate of £96.35 per week (£192.70 in total), which is the rate for
2021/22 (£99.35 2022/23). The employer's claim is also capped at the number of
employees in its PAYE scheme on 30 November 2021.
In a statement, the government said:
‘You have until 24 March
2022 to submit any new claims for absence periods up to 17 March 2022,
or to amend claims you have already submitted.
‘You will no longer be able
to claim back SSP for your employees’ coronavirus-related absences or self-isolation
that occur after
17 March 2022.
‘From 25 March we will
return to the normal SSP rules, which means you can revert to paying SSP from
the fourth qualifying day your employee is off work regardless of the reason for their
sickness absence.’
Internet link: GOV.UK
Businesses urged to apply for remaining COVID-19 support grants
Businesses are being encouraged to apply for remaining coronavirus
(COVID-19) grant funding from local authorities.
Hospitality, leisure and accommodation businesses can still apply
for one-off cash grants of up to £6,000 through the Omicron Hospitality and
Leisure Grant scheme.
The funding is made up of £556 million available through the Omicron
Hospitality and Leisure Grant (OHLG) scheme and a further £294 million through
the Additional Restrictions Grant (ARG) scheme.
The OHLG scheme provides businesses in the hospitality, leisure and
accommodation sectors with one-off grants of up to £6,000 per premise.
To provide further support to other businesses, the ARG scheme
provides councils with funding they can allocate at their discretion to
businesses most in need, such as personal care businesses and supply firms.
Paul Scully, the Minister for Small Business, said:
'We're working to get our
economy running on all cylinders again so we can focus on making the UK the
best place in the world to work and do business, creating jobs along the way.
'Eligible businesses should
apply as soon as possible for the grants available to help them put the
pandemic behind them and get on a sounder footing.'
Internet link: GOV.UK
Two freeports planned for Scotland
A partnership agreement to establish two green freeports in
Scotland has been reached between the Scottish and UK governments.
The locations for the freeports have not yet been decided and there
will be an application process with a view to setting up the freeports in
2023. Applicants in Scotland will be required to contribute towards a just
transition to net-zero emissions by 2045, delivering net-zero benefits and creating
new green jobs.
The UK government is expected to provide up to £52
million in seed funding to help establish green freeports in Scotland,
which is in line with funding offered to the eight freeports already designated
in England.
Freeports are specified geographical areas that allow certain
benefits to businesses operating within them. These include a range of tax and
other incentives, including a suspension from customs duties for imported goods
and less burdensome customs procedures.
Scottish government Secretary for Finance and the Economy, Kate
Forbes, said:
'The Scottish government
will have an equal say on all bids and will expect bidders to adhere to fair
work practices, including payment of the Real Living Wage.
'We can only seize
Scotland's economic potential if we create secure, sustainable and satisfying
jobs that also help build a fairer, more prosperous economy for everyone. That
is my absolute priority and establishing green freeports will be integral to
achieving this.'
Internet link: GOV.UK
HMRC raises late payment interest rate to 3%
Following the decision by the Bank of England to increase the base
rate, HMRC has confirmed that the late payment interest rate rose a
quarter of a percent.
The increase applies from 14 February 2022 for quarterly
instalment payments and from 21 February 2022 for non-quarterly instalment
payments.
On 2 February 2022, the Bank's Monetary Policy Committee (MPC)
increased the base rate to 0.5%.
As HMRC interest rates are linked to the Bank of England base rate,
the increase in the base rate from 0.25% to 0.5% triggered an increase in rates
for late payments.
On 4 February 2022, HMRC announced that the current late
payment interest rate applied to the main taxes and duties would rise to 3%
from 2.75%, effective from 21 February 2022.
The 3% rate is applied to late payments for income tax, national
insurance contributions (NICs), capital gains tax (CGT), stamp duty land tax
(SDLT), stamp duty and stamp duty reserve tax.
The corporation tax pay and file rate will also rise to 3% for late
payments, while the repayment rate remains at 0.5%.
The rate for corporation tax self assessment, if unpaid from normal
due date, will also be charged at 3%. The interest charged on underpaid
quarterly instalment payments rises to 1.5% from 1.25%.
This is the second rate rise in just over a month following two
consecutive rises in the Bank of England base rate. In line with the
December 2021 announcement, interest paid on overpaid quarterly
instalment payments and on early payments of corporation tax not due by
instalments remains at 0.5%, which is unchanged since March 2009.
Internet link: GOV.UK
MPs call for road pricing to replace motoring taxes
The government must overhaul motoring taxes as it phases out new
diesel and petrol vehicles, according to MPs.
MPs on the Transport Committee say the government must come up with
new policy options by the end of the year. A ban on the sale of new diesel
and petrol vehicles will be introduced by 2030, which means £35
billion will be lost in tax revenue.
In a report entitled Road Pricing, the Committee
favoured a road charging system based on technology which measures road
use.
Any scheme would include the drivers of electric vehicles, who would
be required to pay for road usage. It would also cover vans and HGV vehicles,
as well as overseas vehicle drivers.
Huw Merriman MP, Chair of the Transport Committee, said:
‘We need to talk about road
pricing. Innovative technology could deliver a national road-pricing scheme
which prices up a journey based on the amount of road, and type of vehicle,
used. Just like our current motoring taxes but, by using price as a lever, we
can offer better prices at less congested times and have technology compare these
directly to public transport alternatives.
‘By offering choice, we can
deliver for the driver and for the environment. Road pricing should not cost
motorists more, overall, or undermine progress on active travel. Work should
begin without delay. The situation is urgent. New taxes, which rely on new
technology, take years to introduce.
‘A national scheme would
avoid a confusing and potentially unfair and contradictory patchwork of local
schemes but would be impossible to deliver if this patchwork becomes too vast.
The countdown to net zero has begun. Net zero emissions should not mean zero
tax revenue.’
Internet link: Parliament
website
Over a million take advantage of extra time to file self assessment
returns
HMRC has revealed that more than one million taxpayers filed their
late tax returns in February – taking advantage of the extra time to complete
their self assessment without facing a penalty.
About 12.2 million taxpayers were expected to file a return for the
2020/21 tax year and more than 11.3 million submitted their returns by 28
February.
The deadline for submitting tax returns was 31 January but, this
year, HMRC gave customers an extra month to complete it. If customers filed
their returns in February, they would avoid a late filing penalty.
HMRC has given customers until 1 April to pay their outstanding tax
bill or set up a Time to Pay arrangement to avoid receiving a late payment
penalty. Interest has been applied to all outstanding balances since
1
February.
Lucy Frazer, Financial Secretary to the Treasury, said:
‘[The] stats show how vital
the extra month was in supporting the cash flows of more than a million
self-employed people and businesses across the UK, helping to ensure their
survival as we recover from the pandemic.’
Internet link: HMRC
press release
Advisory fuel rates for company cars
New company car advisory fuel rates have been published and took
effect from 1 March 2022.
The guidance states: ‘you can
use the previous rates for up to one month from the date the new rates apply’.
The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after
1 March
2022 are:
|
Engine size
|
Petrol
|
|
1400cc or less
|
13p
|
|
1401cc - 2000cc
|
15p
|
|
Over 2000cc
|
22p
|
|
Engine size
|
LPG
|
|
1400cc or less
|
8p
|
|
1401cc - 2000cc
|
10p
|
|
Over 2000cc
|
15p
|
|
Engine size
|
Diesel
|
|
1600cc or less
|
11p
|
|
1601cc - 2000cc
|
13p
|
|
Over 2000cc
|
16p
|
HMRC guidance states
that the rates only apply when you either:HM
•
reimburse employees for
business travel in their company cars
•
require employees to repay the
cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is 5p per
mile. Electricity is not a fuel for car fuel benefit purposes.
If you would like to discuss your company car policy, please contact
us.
Internet link: GOV.UK
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