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UK House prices increased by 8% year-on-year in July
- The ONS has released its latest survey findings. Despite a fall from a record high in June, the average UK house price (£256,000) increased by 8% in July 2021 compared with the previous year.
- Prospective home buyers are seeking more space, with prices for detached houses (9% growth in July) consistently rising faster than terraced houses (7.7%) or flats (6.1%).
- House prices were rising at three times the national rate in some rural and coastal areas in July, continuing a trend seen during the coronavirus (COVID-19) pandemic.
HMRC to introduce new penalty regime for late VAT returns
The Finance Act 2021 introduced a new regime for late returns. These will come into effect for:
- VAT taxpayers from periods starting on or after 1 April 2022
- Taxpayers within Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024
- All other ITSA taxpayers, from the tax year beginning 6 April 2025.
- The new regime will be a points-based system and will operate in a similar way to motoring penalties in that the points will elapse after a period depending on the regularity of the returns.
- More info can be found here: https://www.gov.uk/government/publications/penalties-for-late-submission
Government to make it illegal for companies not to pass on tips to their employees
- This comes after some major restaurant chains were accused of keeping 10% of tips given to staff. The new legislation will be introduced within a year.
Are some of your staff still working from home due to COVID-19?
You can check which expenses are taxable here: Check which expenses are taxable if your employee works from home due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
- Employers can continue to pay their employees £6 a week to cover the additional expenses of working from home and the amount is free of tax and national insurance.
- This is to cover the additional costs of electricity, heating and water whilst working from home. It has been confirmed that the amount may be paid regardless of the number of days that employees work from home.