Whilst the Chancellor’s measures are all welcome, they are just a drop in the ocean compared to the massive increase in input costs faced by farmers in recent months.
Whilst the support for Business was less apparent during Rishi Sunak’s Spring Statement, the focus was on consultation over the summer with a view to cutting taxes and encouraging investment for business in the Autumn.
The Chancellor confirmed that from 6th July he will raise the NIC threshold for employees and the self-employed, so that it matches the £12,570 income tax personal allowance, which will help many taxpayers who are currently facing a cost-of-living squeeze.
It has been reported in the Financial Times that the Chancellor is preparing to face pressure from the PM to offer new help to households while balancing the fears that inflation could rise to 7% in May.
This new regime is designed to be proportionate, penalising businesses who persistently miss their submission obligations, rather than those who make occasional mistakes. This is good news for businesses who make occasional late returns or payments, as the penalties in these circumstances will be relatively small.
Farmers and landowners are currently being bombarded with ideas of how they can manage their land differently to produce environmental benefit. For farmers who have been brought up to believe that their role was to produce food, this is not an easy transition. Here I look at the possible tax consequences from signing up to these schemes…
Unless the Chancellor responds to requests from the hospitality industry, starting the 1st of April the VAT rate for most goods and services within the hospitality industry will increase from 12.5% to 20%, this reverses the temporary rates that were in place since June 2020.