Last updated about 3 weeks agoNational Minimum Wage The National Living Wage and National Minimum Wage rates will increase for pay periods commencing on 1 April 2024: Statutory payment increases From April 2024 the first six weeks of Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) will remain the same at 90% of the…

Last updated about 2 months agoCurrently, the process allows employers to either submit P11D to report employee benefits for tax purposes at the end of the tax year OR register to payroll benefits, allowing the benefits to be taxed in real-time through PAYE. However, although changes to this process have long been expected, with the…

Last updated about 2 months agoWhat are the increases to the Minimum Living Wage in 2024? You may be aware that the increased National Minimum Wage for all employees begins in April 2024. This is the most significant cash increase since the minimum wage came into force in April 1999 (after the Labour Government passed…

Last updated on November 29, 2023Unsurprisingly, it was a mix of welcome news and potential challenges for individuals and businesses. One of the changes making headline news was the increase in the National Living Wage. Workers aged 21 and over can expect it to increase to £11.44 per hour from April next year. And while…

Last updated on November 23, 2023Yesterday the Chancellor delivered his Autumn Statement, here are the key measures that were announced: The Chancellor said the cut to class 1 NICs will benefit 27m workers with the average worker in 2024/25 paying over £1,000 less in personal tax. The cuts to Class 2 and Class 4 NICs…

Last updated on November 1, 2023HMRC is set to implement new reporting rules & regulations in 2024 which will require digital platform operators in the UK to collect and report information about users engaged in selling goods or services through their platforms. What does this mean?  It means that digital platform operators (this includes apps…

Last updated on October 6, 2023In April 2020, the landscape of company cars in the UK underwent a transformation in favour of electric vehicles (EVs). This pivotal moment came when the UK government made substantial cuts to electric company car tax rates, instantly enhancing the appeal of EVs for both businesses and their employees. We…

Last updated on October 23, 2023We are often asked about available grants and funding so we were pleased to hear some news that could have a significant positive impact in this area for businesses across the UK. Cabinet Office Minister Alex Burghart has launched the ‘Find a Grant’ service, a new UK-wide digital platform aimed…

Last updated on July 5, 2023184,000 people on low incomes were fined by HMRC for not filing a self-assessment tax return last year, despite the fact they earned so little there was no tax due in the first place. The fines were handed out to people who were paid less than £12,500 a year, the…

Last updated on June 27, 2023HMRC recently announced its plan to trial a ‘seasonal model’ for their self-assessment helpline. This decision entails redirecting queries to digital services such as online guidance, digital assistants, and webchat from 12th June until 4th September. The closure of the helpline which gave only four days’ notice (and no prior…

Last updated on March 16, 2023On the 15th March, the Chancellor used his ‘back to work’ Spring Budget to lift the cap on tax-free pension contributions and unveil the ‘full expensing’ tax relief whilst sticking by the corporation tax hike. Here are the measures that were announced in the Spring Budget: ·        Increased the annual…

Last updated on April 6, 2023The government has announced its plans to raise the National Minimum Wage in April 2023. The government hopes that the rate rise, which was announced last November, will provide further protection to the living standards of those on lower wages. The new rates are as follows and will come into…

Last updated on March 9, 2023The government has extended the deadline to make voluntary National Insurance contributions to 31st July 2023, giving taxpayers more time to fill in any gaps in their National Insurance record and help increase the amount they receive in State Pension. The decision was made after members of the public voiced…

Last updated on March 7, 2023We’ve had an increasing number of clients ask us about the Information Commissioner’s Office (ICO), you may have received a letter from them. While we can’t advise on this, we have pulled together the following information which you may wish to save for future reference/action. The ICO is the UK’s…

Last updated on February 10, 2023Despite the delay to Making Tax Digital for income tax self-assessment, unincorporated businesses will have to report their income on the tax year basis – 6th April to 5th April the following year – from 2024/25 onwards. The 2023/24 tax year will be the transitional year which will bring about…

Last updated on February 10, 2023For the 10th consecutive time the Bank of England has again raised interest rates, taking it to its highest level since 2008. Following the 0.5% increase in the base rate from 3.5% to 4%, HMRC will raise interest rates on overdue tax. HMRC interest rates are fixed at the following…

Last updated on December 15, 2022Next year, HMRC’s new penalty regime for late submission and late payment of VAT returns comes into force. But how does it work? Late submission of VAT return From 1st January 2023, when a VAT return is submitted late, even if the return is a nil or a repayment, a…

Last updated on November 17, 2022Key Point Summary Amidst the continuing rising of inflation and current bleak economic outlook, the Chancellor delivered on his promise of tax rises by freezing personal allowance thresholds and lowering the 45p tax rate threshold. In his statement, Jeremy Hunt said he had prioritised “stability, growth and public services” but…

Last updated on November 8, 2022HMRC will increase late payment interest from the 22nd November 2022.  Following the 0.75% increase in the Bank of England base rate, HMRC will raise interest rates on overdue tax. HMRC interest rates are fixed at the following from 22nd November: late payment interest – set at base rate plus…

Last updated on October 17, 2022Following the previously announced U-turns on the 45p tax rate abolishment and the corporation tax rate freeze, today the new Chancellor has gone one step further and completely reset the government’s economic plans. Jeremy Hunt has accelerated measures that were set to be announced as part of the Medium-Term Fiscal…

Last updated on September 9, 2022From 19 September 2022, HMRC will allow employers to take advantage of a recurring direct debit payment plan for PAYE tax. Once the variable direct debit has been set up, HMRC will automatically collect PAYE in future.  Employers with a variable direct debit set up will have the following charges…

Last updated on August 10, 2022It wasn’t very long ago we were last updating you on HMRC interest rates, however, due to the Bank of England base rate yet again increasing in August 2022, from 1.25% to 1.75%, the HMRC interest rates will also increase. HMRC interest rates are fixed at the following from 23rd…

Last updated on August 4, 2022Last month the Supreme Court ruled that Harper Trust´s calculation of its employees’ holiday pay was unlawful and could have significant implications for many companies that have teams on zero-hour contracts, term time employees or seasonal workers. Mrs Brazel was a part time music teacher who had varying hours throughout…

Last updated on August 10, 2022Due to the Bank of England base rate increasing again in June, from 1% to 1.25%, the HMRC interest rates will also increase. HMRC interest rates are fixed at: late payment interest – set at base rate plus 2.5%. repayment interest – set at base rate minus 0.5% (until base…

Last updated on May 21, 2022On 5th May 2022 the Bank of England Monetary Policy Committee voted to increase the Bank of England base rate from 0.75% to 1% as a result of the recent rise in inflation. This will impact HMRC interest rates which are fixed at: late payment interest – set at base…

Last updated on April 6, 2023Over the last few years landlord accounting has become an increasingly challenging area of tax and legislation, and with the introduction of Making Tax Digital for Income Tax Self-Assessment in April 2026 it is going to continue to do so. MTD ITSA will require individuals with rental income above £50,000…

Last updated on April 6, 2022The Spring Statement is usually only intended to provide an economic update, but due to the pressure of inflation hitting a 30 year high, the Chancellor has announced the following: Raising National Insurance Threshold The planned 1.25% increase in national insurance will go ahead in April to raise cash for…

Last updated on May 27, 2022Payroll Changes 2022/23 The National Living Wage and National Minimum Wage rates will increase for pay periods commencing on 1 April 2022: Health and Social Care Levy From the 2022/23 tax year there will be a new health and social care levy. The levy will be set at 1.25%, and…

Last updated on December 13, 2023Before I start this blog I want to say please don’t get your hopes up about the available grants, however, if you are one of the very few with eligible criteria we would be delighted to help you redeem this grant! With Making Tax Digital (MTD) on the horizon you…

Last updated on May 27, 2022To protect workers’ living standards in 2021 The Government announced on 25th November 2020 the National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from April 2021. It accepted in full recommendations made by the Low Pay Commission at the end of October. For…

Last updated on November 26, 2020HMRC have published a policy paper covering changes to the R&D (research and development) tax relief rules for small and medium-sized enterprises which will take effect from 1 April 2021. The changes mean that from 1st April 2021, the amount of R&D tax relief credit a SME can claim in…

Last updated on September 18, 2020The Department of Education have announced the new student loan repayment threshold rise that will apply from 6th April 2021. The repayment threshold for Student Loan Plan 1 will increase by 3% and the repayment threshold for Student Loan Plan 2 will increase by 2.7%. The repayment threshold for the…

Last updated on May 27, 2022In a recent Court of Appeal case, the court determined that three modified crew-cab vehicles that Coco-Cola supplied to its employees were cars and not vans. The case only considered the definition of a van for benefit in kind purposes, but it brings concerns about other areas of tax where…

Last updated on May 27, 2022From 1st July 2021 (postponed from 1st January 2021), new measures from the European Commission’s VAT e-commerce package will come into practice. These new measures aim to create more efficient rules for online businesses, support e-commerce start-ups thriving in the EU and tackle fraud. From 01st July 2021, the scope…

Last updated on May 27, 2022For sales made on or after 1st January 2021, you will not be able to use the UK’s VAT VAT MOSS (Mini One Stop Shop) service to declare sales and pay VAT due in EU member states. The final return period for the UK’s VAT MOSS system will be the…

Last updated on May 27, 2022**Please note there will be new rules from January 2021** In January 2015 it became law to charge consumers of digital services local VAT based on where they used the service. Instead of having to register for VAT in all the different EU countries where you have customers, you could…

Last updated on May 27, 2022With HMRC now putting IR35 changes back into play we thought we’d do an update on what this means for freelancers. What is IR35 IR35 allows HMRC to collect additional tax payments in cases where a contractor is an employee in all but name e.g. a contractor operating through an…

Last updated on May 27, 2022National Living Wage and National Minimum Wage rates increased on 1 April 2020. Previous rate Current rate from 1 April 2020 Increase National Living Wage £8.21 £8.72 6.2% 21-24 Year Old Rate £7.70 £8.20 6.5% 18-20 Year Old Rate £6.15 £6.45 4.9% 16-17 Year Old Rate £4.35 £4.55 4.6% Apprentice…

Last updated on April 25, 2022I’m getting several clients asking about the Time to Pay eligibility for HMRC payments of tax, so I thought I’d share what HMRC are telling us: Support for businesses paying tax: Time to Pay service All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be…

Last updated on February 28, 2020What is Principal Private Residence Relief? Sometimes when property owners sell a house which they may have used as their main residence at some point, means they are entitled to claim relief for this period when calculating Capital Gain Tax. How does Principal Private Residence Relief work now? Currently, property…