As widely predicted, the Chancellor announced increases to the rate of National Insurance contributions (NICs) paid by employers in the 2024 autumn budget. The primary rate of secondary Class 1 NICs will increase by 1.2% to 15% (from 13.8%) effective 6 April 2025. The Class 1A and Class 1B employer rates will also increase in line with this change.
 

Rachel Reeves delivered her first Budget as Chancellor of the Exchequer on 30 October 2024.

It was a confident and inspiring presentation by the first female Chancellor of the Exchequer in British history.

The Budget aims to deal with the ‘ black hole’ in public finances whilst supporting economic and fiscal stability, increasing investment and rebuilding public services.

When is the budget taking Place?
There is unlikely to be much to celebrate when Rachel Reeves delivers her first Budget on the 30th of October.
 
Speculation is rife regarding the likely targets for tax changes and increases. We have listed a few of the more persistent predictions below. But note, these are just predictions, and there will no doubt be “surprises” when the Budget details are released.

The state pension age in the UK is the earliest age you can start claiming your state pension. This age depends on when you were born. The state pension age is currently 66 for both men and women but will increase again from 6 May 2026 to 67 for those born on or after April 1960.

Companies House have released a warning to users saying that they have received multiple reports of people receiving letters claiming to be from Companies House. The letters claim that the user is required to pay for ‘enhanced web filing access’.

You can usually claim tax relief on private pension contributions worth up to 100% of your annual earnings, subject to the overriding limits. Tax relief is paid on pension contributions at the highest rate of income tax paid.

The Annual Investment Allowance (AIA) is a generous tax relief that allows for the total amount of qualifying expenditure on plant and machinery business assets to be deducted from your profits before tax.

Following widespread speculation of tax cuts, with Child Benefit and National Insurance being key topics, the Chancellor of the Exchequer (Jeremy Hunt) delivered his Spring Budget today, focusing on tax cuts for workers and parents.

HMRC has published new guidance for taxpayers who regularly sell goods or services through an online marketplace. The guidance clarifies that this activity could be treated as a ‘trade’ for UK tax purposes. If this is the case, taxpayers may need to pay the income tax they earn from buying and selling goods as a trade or business using online marketplaces such as eBay. 

HMRC’s vision to digitalise the UK tax system continues to unfold with General Partnerships that have a taxable income above £10,000 set to join Making Tax Digital (MTD) for Income Tax from April 2025. 

To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.

To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.

Legislation was introduced in July 2017, which requires ‘express’ trusts with a UK tax liability, to submit, electronically, accurate information of the beneficial owners to HMRC through the TRS. 

Individuals looking to determine their residence status in the UK for tax purposes can use our Statutory Residence Test Flowchart to see if they are a resident or non-resident.

The basis period rules for unincorporated businesses are being changed from the 6 April 2024, with a transitional year of the 2023/24 tax year.

The basis period rules for unincorporated businesses are being changed from the 6 April 2024, with a transitional year of the 2023/24 tax year.

You and each member of your family is entitled to make tax-free capital gains of up to £12,300 in the 2021-22 tax year. If you have made no disposals that would trigger a capital gain in 2021-22.

You and each member of your family is entitled to make tax-free capital gains of up to £12,300 in the 2021-22 tax year. If you have made no disposals that would trigger a capital gain in 2021-22.

John Glen MP, the Economic Secretary to the Treasury and City Minister, will be providing a complete overview of the major fiscal, taxation and investment measures contained in the 2022 budget and how they affect businesses in the Salisbury and South Wiltshire area.  

We will outline some of the opportunities that individuals and businesses may consider taking during the current year ending 5 April 2022, to be more tax efficient.

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for one month giving Self-Assessment taxpayers extra time (if required) to complete their 2020 to 2021 tax return and pay any tax due. 

Furlough claims made in August 2021 must be submitted to HMRC by Tuesday 14 September 2021.

Expenditure on business entertainment is not allowable as a deduction against profits. Nor may a deduction be made for any expenditure which is incidental to business entertainment. Spending on rewarding staff for good work or to raise morale is classed as employee entertainment which will be eligible for tax relief and you will be able to reclaim VAT on. 

You must declare goods that you take with you to sell outside the UK (e.g. if they are in your baggage or in a private vehicle). There is a different process if you take goods abroad temporarily (e.g. samples for a trade fair) or use a courier or freight forwarder.
 

The update now puts the onus of the SDS (Status Determination Statement) on medium or large companies using contractors. Companies which HMRC defines as a small company will not have to complete the SDS.

Employed and Self-Employed persons can take advantage of tax breaks on their time working from home. 

With the continued changes coming from HMRC to the building and construction industry, there is yet another major change on its way which will affect both customers and suppliers who are CIS and VAT registered. 

In an effort from HMRC to be more transparent about the use of taxpayers’ funds and deter fraudulent activity, they will be publishing information about employers who claimed from the Coronavirus Job Retention Scheme (CJRS) for periods starting on or after the 1 December 2020.

There have been a number of things driving the increases in the pension age over the last few years, and women have been particularly affected by this as their state pension age has increased from 60 to 66 in that time.  For men the increase has been less extreme, with the age increasing by only one year from 65 to 66.

Readers with children at university should pass on this message as students starting university this year are being warned by HMRC that they could be targeted by a fresh wave of tax scams.

In a press release issued 10 September 2020, the Department for Health and Social Care has reminded affected businesses that they have a legal obligation to record the contact details of their customers, visitors and staff.

From the 26 March 2020, the following rights of landlords and tenants regarding eviction apply.

Official HMRC data shows the number of small buy-to-let landlords dropped last year*, as cuts to tax relief start to bite, says accountants and business advisors, Moore.

Although the Brexit process continues to throw a spanner into the normal workings of government, there are a few certainties from a tax point of view that will be effective from April 2020. A few property related changes are noted in this article:

If you rent out all or part of your home this may create a Capital Gains Tax (CGT) charge when you sell the property.

HMRC has a new £100m weapon to help identify individuals who may not be declaring all of their income and, therefore, paying too little tax.  

• You can claim Capital Gains Tax reliefs for traders (Business Asset Rollover Relief, Entrepreneurs’ Relief, relief for gifts of business assets and relief for loans to traders),

The gradual restriction of tax relief for buy-to-let mortgage interest has received much publicity since the process commenced 5 April 2017. From that date, tax relief is converted from a straight forward deduction against business profits into a basic rate tax deduction.

The gradual restriction of tax relief for buy-to-let mortgage interest has received much publicity since the process commenced 5 April 2017. From that date, tax relief is converted from a straight forward deduction against business profits into a basic rate tax deduction.

In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
 

In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
 

Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.

Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.

1 June 2018 - Due date for Corporation Tax due for the year ended 31 August 2017.

1 June 2018 - Due date for Corporation Tax due for the year ended 31 August 2017.

Most people know that you do not pay Capital Gains Tax when you sell your main residence because you automatically qualify for a tax relief called Private Residence Relief.

Most people know that you do not pay Capital Gains Tax when you sell your main residence because you automatically qualify for a tax relief called Private Residence Relief.

A new report published by the Intermediary Mortgage Lenders Association (IMLA) has revealed that net investment in buy to let property has fallen from £25 billion in 2015 to just £5 billion in 2017 due to excessive regulatory intervention on the sector. 

A new report published by the Intermediary Mortgage Lenders Association (IMLA) has revealed that net investment in buy to let property has fallen from £25 billion in 2015 to just £5 billion in 2017 due to excessive regulatory intervention on the sector. 

Are you looking ahead to your future? Perhaps, you have parents or relatives who may require care assistance?

Are you looking ahead to your future? Perhaps, you have parents or relatives who may require care assistance?