From The Knowledgebase: Legislation Updates

The start of April brings changes to a number of tax rates and bands… Allowances Personal Allowance – the personal tax free allowance for UK residents has increased to £12,500. Higher Rate Threshold – the higher rate tax threshold for UK residents has increased to £37,500 (£50,000 including personal allowance). Dividend Allowance Reductions – the…

We are currently putting procedures in place for the changes coming in to play for the new tax year. I thought it would be useful as an employer for you to know what the changes are so you can make sure you are complying with the legislations too…. There are 3 main changes being put…

With only two weeks to go before Brexit it was understandable that the Chancellor of the Exchequer, Philip Hammond, was going to present a low-key mini-spring budget in order to not create more difficulties for the Government as it struggles to finalise a deal with the EU. Therefore, on the fiscal side he kept to…

The government’s plan to digitise tax for everyone in the UK begins in April 2019 with MTD for VAT. The new rules will require businesses with a taxable turnover above the VAT threshold (£85,000) to store financial records digitally and submit VAT returns from MTD-compatible accounting software. You can read more about MTD for VAT…

Could being prepared for the Minimum Wage Increase April 2019 help you maintain a good Gross Profit Margin? With the festive season upon us it is hard to think about what we need to address in April, but by looking at the new Minimum wage now you could make sure your Gross Profit doesn’t take…

Allowances Personal Allowance – the personal tax-free allowance for UK residents will increase to £12,500 from 6th April 2019. Higher Rate Threshold – the higher rate tax threshold for UK residents will increase to £37,500 (£50,000 including personal allowance). Income Tax rates and thresholds on non-savings, non-dividend income for Scottish taxpayers are set by the…

  The start of April brings changes to a number of tax rates and bands…       Allowances Personal Allowance – the personal tax free allowance for UK residents has increased to £11,850. Higher Rate Threshold – the higher rate tax threshold for UK residents has increased to £34,500 (£46,350 including personal allowance). Dividend…

How will the dividend changes affect you?   As you may be aware the tax free dividend allowance is due to be cut from £5,000 to £2,000 in April 2018, so how will this affect you?   How you are affected financially by the cut, will depend on which tax band the first £5,000 of your…

Good news from the budget regarding the Making Tax Digital threshold. From a self-employed person’s perspective the budget seems to have been a bit of a sham, from the hike in NIC contributions (which has since been rescinded) and the disappearance of the tax free dividend allowance there wasn’t much to celebrate …. However, there…

Allowances Personal Allowance – the personal tax free allowance for UK residents will increase to £11,500 from 6th April 2017. Higher Rate Threshold – Scottish residents will have a higher tax rate threshold of £43,000, £2000 lower than the rest of the UK. Two New Allowances – ‘the Trading and Property Income Allowances’ are £1000…

The Government’s plans to change the way that apprenticeships are funded come into force in April 2017.  Employers may be required to pay contributions to the new apprenticeship levy and there will also be changes to the way apprenticeship training is funded for all employers. If you are a small, medium or frankly pretty large…

It was announced in the Autumn Statement that from April 2017, “businesses with limited costs, such as many labour-only businesses” will have their VAT flat rate percentage increased to 16.5% meaning they will be liable to pay hundreds, if not thousands of pounds in additional VAT liabilities each year. The changes have been brought about…

Philip Hammond delivered his first (and last) Autumn statement last week, here’s a quick guide on how it will affect you. Tax and NI In 2017/2018 the tax-free personal allowance will be increased to £11,500. This is aimed to be increased to £12,500 by the end of parliament. In 2017/2018 the higher rate tax bracket…

From April 2016 the way dividends are taxed is going to change. How dividends are taxed now? The amount you take as dividends from the company (net dividends) is multiplied by 10/9 to produce the gross dividend. This is to take into account a notional ‘tax credit’ as Corporation Tax has already been paid by…

If you are an eligible employer, you can reduce the amount of employer National Insurance contributions (NICs) you pay by up to £2,000 a year through the Employment Allowance. From April 2016, subject to Parliamentary approval, the maximum value of the allowance will rise to £3,000 a year. This means that your employer National Insurance…

The Government intends to relax the rules on the taxation of Benefits-in-Kinds for employees, it has been revealed. The new rules are due to come into force from 6 April 2016 after the next Finance Act. Under the new rules low value  Benefit in Kind amounts will be exempt from income tax and national insurance…

How Osborne has changed auto enrol Just when you were getting used to auto enrol arrangements, the inevitable has happened. The Chancellor has gone and changed them! In truth, there was only a minor tweak in the recent autumn statement. Nevertheless, it’s significant: • Employer and employee contributions are scheduled to increase from 1% to…

As we have now passed 1st October 2015 all the new wage rates will apply. Please make sure that you have checked your employees rates for any payroll that is processed in October. If you would like details of the new hourly rates , please CLICK HERE Do you find keeping up with legislation a…

Changes to National Minimum Wage (NMW) rates have been approved by the Prime Minister and Deputy Prime Minister, following recommendations made by the Low Pay Commission (LPC). From 1st October 2015, the NMW rate for workers aged 21 or over will increase from £6.50 to £6.70; for 18 to 20-year-olds, it will increase from £5.13…

The collection of Class 2 NICs will now be through Self-Assessment so that the self-employed can pay their income tax and Class 2 and Class 4 NICs together through one process. This will start from the 2015-16 tax year onwards. The existing six monthly bills and current direct debit payments will both cease during 2015….

Minimum wage is on the rise from 1st October 2014, please see your new rates below:           Adult hourly rate of the minimum wage will increase from £6.31 to £6.50         Development rate (which covers workers aged 18-20 years) is up 2% from £5.03 to £5.13         Rate for 16 to 17-year-olds rises by 2% from £3.72…

Chancellor George Osborne delivered this year’s Autumn Statement yesterday. I have outlined the key points below in simple terms for the items that affected small business: Personal Income Tax Married couples may now be able to transfer £1,000 of their personal allowance to a higher earning spouse, although this will not apply to higher rate…

Understanding your Tax Code from April 2012: For 2012–13 the basic Personal Allowance will be £8,105 and the basic rate limit will be £34,370. The new threshold (starting point) for PAYE is £156 per week (£675 per month). The new emergency code is 810L.   Tax rates and bandwidths are: Rate                                       %            Bandwidth…