We love cars!!
For anyone looking to purchase a new car in their business, remember the CO2 threshold rates changed last April. From this date,
- The 100% First Year Allowance (“FYA”) will now only apply to the purchase of new/unused fully electric cars with 0g/km of CO2 emissions (previously up to 50g/km)
- The main rate 18% Writing Down Allowances (“WDA”) will only be available to cars with CO2 emissions not exceeding 50g/km (down from 110g/km)
- The special rate WDA of 6% will apply to all vehicles exceeding emission levels of 50g/km (currently above 110g/km)
Goods news is HMRC confirmed that the FYA rules for expenditure on business cars, zero emission goods vehicles and equipment for gas refuelling stations, are being extended from April 2021 until April 2025.
HMRC and property
You should pay capital gains tax on your main residence (there are exceptions) but you are liable to pay capital gains tax on any gains you have made on other properties (remember to use up any unused losses and allowances where allowable). If the property was sold between 6th April 2020 and 26 October 2021, you should have reported the gain to HMRC within 30 days. This reporting period has been extended to 60 days if the property was sold after 27th October 2021. For more information, use the link https://www.gov.uk/capital-gains-tax
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HMRC interest rates
Paying your self assessment tax liability late?
From 21st February 2022, the interest rate for late payments to HMRC will increase to 3%.
Late payment penalties remain at zero providing payment is made by 1st April 2022.
Good news is if you over pay, HMRC has maintained the repayment interest rate of 0.5%