2022 looks set to be another eventful year for accountants and their clients. Alongside existing tax filing deadlines and fiscal announcements, the year ahead will see several COVID-related support measures being tapered off and ending. There’s also going to be a few tax rises and, perhaps most significantly of all, the mandating of Making Tax Digital (MTD) for all VAT registered businesses.
To cope with these changes, accountants should adopt digital tools wherever possible to free up their time and ensure deadlines are met with the correct amount of tax being paid.
Use our list below of key dates for accountants in 2022 to ensure your practice and clients are prepared for these changes and can fulfil requirements, avoid fines and make the most of associated opportunities.
31 January: Self-assessment (2020/21) online filing deadline
31 January is the deadline for electronically filing self-assessment tax returns for 2020/21.
At the beginning of the month, HMRC announced that no penalties would apply for returns up to one month late. However, most firms will still want to meet the January deadline to get tax season done and dusted for another year.
31 January: First payment on account for self-assessment
Payment becomes due for the first payment on account for self-assessment related to the 2021/22 tax year. The value of this payment will be generated when completing 2020/21 tax returns.
If sole traders expect a drop in profits during the 2021/22 tax year, accountants can reduce their payment on account estimates when completing their 2020/21 returns.
31 March: VAT rate for hospitality returns to 20%
On 31 March, VAT for hospitality will revert to the full rate of 20%, after being reduced to 5% from 15 July 2020 and then increased to 12.5% from 1 October 2021.
Accountants should work with their hospitality clients to ensure they comply with this change and may need to help them optimise their pricing.
5 April: Last day to utilise ISA allowances and exemptions for capital gains tax and inheritance tax
Accountants should work with their clients to ensure that they can utilise tax allowances and benefits in full by the end of the tax year.
The maximum amount that can currently be invested in an ISA is £20,000 per annum, and the capital gains tax-free allowance is £12,300 and cannot be carried back.
6 April: MTD for VAT is mandated for all registered businesses
The first day of the new tax year ushers in a raft of changes, with one of the most significant being MTD for VAT being mandated for all VAT registered businesses.
Previously certain categories of VAT registered businesses were excluded from MTD for VAT, such as those below the VAT threshold who voluntarily registered.
Accountants should make the most of the opportunity of an increasing number of clients moving to MTD for VAT compliant software by using it to introduce technology tools, including Modulr’s Payments Dashboard, for payments automation.
6 April: Increase to National Insurance Contributions (NICs)
From 6 April, NIC rates will increase by 1.25% for class 1 NICs paid by employees and class 4 NICs paid by self-employed workers. Additionally, employers will have to pay an additional 1.25% on secondary class NICs.
The increased contribution on secondary class NICs will increase payroll costs for clients, so accountants should confirm whether their clients have adequate cash flow and ensure compliance requirements are fulfilled.
31 May: Deadline for P60s filings
Employers must file a P60 form with HMRC containing data on who they employed on 5 April 2022.
30 June: Applications close for Recovery Loan Scheme (RLS)
After being extended for six months, applications for the Government’s RLS scheme will finally end on 30 June 2022.
This enables qualifying businesses affected by coronavirus to access debt finance up to £10m.
6 July: Deadline for P11Ds
Employers must submit P11Ds to HMRC containing data for the 2021/22 tax year.
Accountants providing payroll services for clients should work with them in advance to access supporting data.
31 July: Second payment on account for self-assessment
Payments must be made for the second payment on account for self-assessment related to the 2021/22 tax year.
31 October: Self-assessment (2021/22) paper filing deadline
Self-assessment returns for 2021/22 filed by paper must be submitted by 31 October.
TBC: Autumn Budget 2022
No date has yet been set for the Budget but it is likely to take place in November.