New VAT Customs & other indirect taxes rules
Please see below a round-up of the changes which have come into effect on 1 January 2022 and which we know are coming in during 2022.
1 January 2022
Full Customs declarations and controls are now a requirement for imports into the UK from the EU with the exception of Northern Ireland.
If you have not already appointed a Customs agent or implemented in house Customs procedures, it is now urgent that you do so if you are an importer.
1 April 2022
VAT registered businesses with a turnover below £85k are mandated into Making Tax Digital which requires returns to be filed using compatible software with digital links.
The temporary reduced rate for hospitality, hotels, holiday accommodation and admission to certain attractions ends on 31 March 2022. The rate from 1 April 2022 will be the standard 20% unless the Government announces a further extension.
The plastic packaging tax is introduced. Manufacturers and importers of plastic packaging need to consult the rules now to see if they are liable to register and pay the tax which is charged at £200 per ton.
Very large businesses with £200m + turnover or UK balance sheets exceeding £2bn are required to notify HMRC of ‘uncertain tax treatments’.
Some good news! The new late filing and late payment fixed penalty is introduced to replace the default surcharge regime. The new fixed penalty will be a fairer and certainly a less financially crippling penalty than the previous default surcharge which was based on the amount of tax due.
1 July 2022
Further Customs certification and physical checks are introduced for imported animal, meat and plant products with new border control procedures.
1 September 2022
Certification and physical checks are introduced for all imported dairy products.
1 November 2022
Certification and physical checks are introduced for all remaining regulated products of animal origin including composite and fish products.
For assistance with any of the above changes please contact a member of our VAT team.
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