On Wednesday 8 July 2020, the Government held an emergency mini budget to minimise the pain as the economy faces the challenges of the past few of months. The main priority on the agenda was unemployment rates, with the Chancellor announcing that he wants to ‘protect, support and create jobs.’ What’s changing? Furlough Scheme With … Continue reading New Support Announced by the Chancellor in His Summer Statement
The reporting of employment allowance is changing. From April 2020, eligible employers are entitled to claim up to £4,000 off their employer national insurance costs. However, where their claim would previously be rolled over into the new tax year, now, due to Brexit the process has changed. Employment Allowance is now classed as a State … Continue reading How to Claim Employment Allowance
The government has recently been circulating adverts promoting the holiday pay awareness campaign. ‘Holiday pay: it comes with the job’ is part of the modern Industrial Strategy, which aims to give employers and workers a better understanding of both workplace rights and responsibilities. Recent research suggests some 1.8 million people currently do not receive the … Continue reading An Update on Holiday Pay
In a new report, the Office of Tax Simplification (OTS) has called for the Pay as You Earn (PAYE) system to be reviewed, to ensure tax agents can 'see relevant client information' and 'access a number of key services'. The report suggested that tax agents 'don't always have full access to their clients' PAYE records'. … Continue reading OTS Calls for Review of PAYE System
From 6 April 2019, minimum employer and total contributions into pension schemes rose. Here, we review these changes, and analyse the pensions auto-enrolment scheme in greater detail. Auto-enrolment: an overview Under the pensions auto-enrolment scheme, employers must automatically enrol eligible workers into a qualifying pension scheme. Employers’ duties include assessing the types of workers in … Continue reading Reviewing the Changes to Pensions Auto-Enrolment
The start of the new tax year brought significant changes to legislation. It is also P11D season: these need to be completed soon. Increasing minimum wage From April 2019, the National Minimum Wage (NMW) and the National Living Wage (NLW) rates increased. From 1 April 2019, the hourly rates of pay are as follows: Age … Continue reading New Tax Year, New Tax Rules: Are You Up-To-Date?
New legislation came into force this month regarding employees’ payslips. There are two issues which are being amended: Firstly, under the new system employers will need to provide itemised payslips to every worker on their payroll, not just those classified as ‘employees’. Currently, employers are not obliged to issue payslips to contractors, freelancers, and other … Continue reading What’s on Your Payslip?
The 2018 Autumn Budget announced changes to the ‘off-payroll’ working (or ‘IR35’) rules, which are set to apply from April 2020. This may affect you if you work on a contract through a personal service company (PSC) in the private sector, or hire or place such workers. Similar rules already apply in the public sector. … Continue reading New Rules for Personal Service Companies
This post was originally published on 25 March 2019 and updated on 1 April 2021 for freshness, accuracy and comprehensiveness. Following HMRC updates, directors can increase their current salary without paying tax or National Insurance (NI) contributions. From 6 April 2021, we advise our clients who are directors to increase their current salary to £184/week, … Continue reading Increase to Directors Salary
Experts have recently warned that thousands of over-55s are at risk of incurring charges and reducing the available tax relief if they continue to delve into their pension pots whilst benefiting from workplace pension contributions. This article takes a look at some key pensions tax reliefs and allowances. Relief on pension contributions All pension schemes, … Continue reading Are You Making the Most of Pensions Tax Reliefs?