Tax Changes from April

Here are some tax changes and changes to other Government regulations.

HMRC has announced that it will stop making payments to Post Office card accounts in April and is advising customers to switch to new accounts so they don’t miss out on payments. The changes come into force from April 5th, meaning customers must notify HMRC of their new account details. Customers can choose to receive benefit payments through a bank, building society or credit union account but need to notify HMRC of the details before April 5th.

Another change starting in April is an increase in Vehicle Excise Duty, known as Car Tax. Car Tax will rise in line with the Retail Prices Index measure of inflation however, the increase will depend on your vehicle's emissions. For example, if your car emits no CO2 your car tax will remain at zero. If your car's CO2 emissions are between one and fifty grams per kilometer, your rate of car tax will increase from £155 to £165 but your first-year rate will remain at £10. 

New tax for plastic packaging. 

A new "plastic packaging tax" is coming into force in April 2022 that will apply to all plastic packaging manufactured in the UK, or imported into the UK, that does not contain at least 30 percent recycled plastic. The government has defined plastic packaging as “packaging that is predominantly plastic by weight” and says the new tax will not apply to any plastic packaging which contains at least 30 percent recycled plastic or any packaging which is not predominantly plastic by weight.
Imported plastic packaging will be liable to the tax whether the packaging is unfilled or filled. The government says the new tax aims to “provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging” and should lead to increased levels of recycling and collection of plastic waste, saving much of it from going to landfill.
The new law will take effect from April 1. Accountancy firm Harold Duckworth reports the rate of tax will be £200 per metric tonne of plastic packaging.

Changes in corporation tax.
Companies and unincorporated associations that pay corporation tax will be affected by changes that come into effect on April 1, 2022. HMRC has set the “main rate” for corporation tax for all non-ring-fenced profits to 19 percent for the financial year that begins on April 1, 2022, increasing to 25 per cent of profits over £250,000 from April 1, 2023. A small profits rate (SPR) will also be introduced at this time for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19 percent.

Households urged to get ready for £150 council tax rebate.
Households across England are being urged to set up direct debits with their local council to receive a council tax rebate that will help millions of families manage costs of living. People who pay council tax by direct debit will see the cash go directly into their bank accounts from April. Those who do not pay by direct debit will be contacted by their council and invited to make a claim.
Around 20 million households in council tax bands A to D - including 95 percent of rented properties - are set to benefit from the £3 billion council tax rebate, which does not have to be repaid. It is part of a package of government measures to help families with rising energy costs.
An extra £144 million will also be given to councils to provide discretionary support to vulnerable households who may not qualify for the £150 council tax rebate. This includes people on low incomes in council tax bands E to H.
According to the Secretary of State for Levelling Up, Michael Gove: "As we emerge from the pandemic, we understand the pressures facing many families as global inflation levels increase. The support we have introduced will help millions of people, particularly those on the lowest incomes and the most vulnerable. We continue to stand behind the British people and I urge everyone who is eligible to claim this rebate to do so."