PAYROLL PROCEDURES

As the 2021/22 tax year has now ended, employers need to carry out the following end of year procedures:

• Provide employees with their P60 annual summaries by 31 May 2022
• Prepare forms P11D for employees’ expenses and benefits by 5 July 2022
• Update employees’ payroll data for 2022/23, in particular, their new tax codes
• Update their payroll software for 2022/23 if they haven’t already done so.

CHANGES TO VAT RATES FROM 1 APRIL 2022

Many in the hospitality sector were hoping that the Chancellor would extend the 12.5% reduced rate that has applied since 1 October 2021 but, as scheduled, the rate reverted to 20% from 1 April 2022.

The increase applies to hospitality, visitor attractions, and catering services including restaurants and takeaways.

This has a consequential effect on the VAT Flat Rate Scheme percentages from 1 April 2022 onwards as set out below:

Type of Business	From 1 April 2022
Catering services including restaurants and takeaways	12.5%
Hotel or accommodation	10.5%
Pubs	6.5%