Apr 1, 2024 | Budget, News
In past years, the annual Budget was shrouded in secrecy. No one was supposed to know what was in the Red Box that the Chancellor held up outside 11 Downing Street on his way to Parliament. There was an element of suspense. Now it seems that most of the proposals were predicted in the morning papers – the television pundits were reduced to speculating whether Jeremy Hunt would produce ‘a rabbit from his hat’, but it turned out that the hat only contained what was expected. The further reduction in National Insurance Contributions, over and above cuts already………………..
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Mar 23, 2022 | Budget, News
Sunak springs surprises
The Chancellor presented two Budgets in 2021 in which he set out a great many details of the tax rates and rules that will apply until April 2026. The 2022 Spring Statement was expected to review the economic situation and adjust forecasts, but was not supposed to include anything significant about tax. Of course, things have changed dramatically since October: there is a war in Ukraine, energy prices are rising sharply and inflation has returned to levels last seen in the early 1990s. An announcement had already been made in February of measures to help people with fuel bills later in the year, and commentators were speculating how much more Mr Sunak might do now, with tax receipts running higher than forecast and the effect of inflation set to increase those receipts in the future. Most predicted he would do something, but many believed he would be cautious and leave significant changes for the next Budget.
In the event, his speech contained more on tax than almost anyone could have expected. He started with a temporary cut in fuel duty, expected to save the average motorist about £100 in the next year. He went on to remove VAT from the installation of energy-saving materials in houses, which will save money for a smaller number of people. Then he declared that he intended to implement a ‘tax plan’ going forward, with the overall aim of bringing taxes down year on year over the life of the Parliament, and started with a big surprise: a huge rise in the National Insurance Contribution thresholds to apply in July 2022 that will mean that 70% of people will pay less NIC in spite of the introduction of the 1.25% increase that will apply from April. He went on to increase Employment Allowance, which is a relief from Employers’ NIC for small businesses, and to promise a cut in the basic rate of income tax from 20% to 19% in April 2024.
The announcement of significant tax changes several times a year, to apply from different dates, makes it hard to keep track of what is changing and when, and how it affects your finances.
In this document we have set out the latest proposals and their impact, but also included a reminder of significant measures from the two Budgets in 2021 and other separate announcements. The Spring Statement was mainly about tax cuts, but the October Budget included a number of tax increases. If you would like to discuss what it all means for you, we will be happy to help.
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Sep 10, 2021 | News
The government announces tax changes to fund £12 billion a year to be spent on the NHS and social care across the UK.
National Insurance contributions (NICs) will increase by 1.25% for one year only for employees, employers and the self-employed from April 2022. Those above State Pension Age are not impacted by the April 2022 changes.
From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced. This will apply to both the employed and self employed. The Levy will also be extended to those over State Pension age who are in work. When the new levy comes into effect, National Insurance rates will revert back to current levels.
The levy will also apply to individuals above State Pension age with employment income or profits from self-employment.
Like National Insurance, levy contributions will apply UK-wide. People will pay the same in England, Scotland, Wales and Northern Ireland.
The government will also increase the rate of income tax on dividend income by 1.25% from April 2022.
Mar 3, 2021 | Budget, News
The key announcements in the Budget on Wednesday 3 March 2021……..
Budget Key Points.
Mar 18, 2020 | News, Uncategorised
Following the latest government briefing, the link below provides a summary of the help available for businesses including the job retention scheme, grants, loans, VAT and income tax deferral.
Covid-19: Support for business
Feb 27, 2020 | News
Major changes to the tax regime for gains made on sale of residential property will take effect from April 2020. If a liability arises, you will be required to submit a provisional calculation to HMRC within 30 days of completion. You will also need to pay an estimate of the capital gains tax due.
The 30 day declaration and payment applies whether or not you are within the self assessment system. If you do complete an annual tax return, you will still be required to declare the gain on your tax return. If not within the system, HMRC have advised that you will not need to register for self assessment but instead, after the tax year, you should review the provisional calculation to see if you have paid the capital gains tax at the correct rate i.e. 18% or 28%, and then make any changes required.
Please contact us for further information.
