Spring Budget tax update

In his first Budget on 8th March the new Chancellor Phillip Hammond announced that he would level the playing field between employees and the self-employed by increasing Class 4 National Insurance Contributions (NICs) from 9% to 10% from 6 April 2018 and then to 11% from 6 April 2019. His justification is that the self-employed are now entitled to more …

National Living Wage

National living wage for workers aged 25 and over The new National Living Wage becomes law in April 2016 for workers aged 25 and over From 1 April 2016 workers aged 25 and over will be legally entitled to a new minimum pay rate of £7.20 per hour, called the National Living Wage (NLW). As an employer you’ll need to …

Changes to Dividend Allowance

Dividend Allowance Currently only higher or additional rate taxpayers pay tax on dividends. However from April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income you have. The allowance is available …

Scottish rate of income tax

Latest news issued from HMRC for  residents living in Scotland                   The Scottish rate of Income Tax will come into effect from 6 April 2016. On 2 December 2015, HMRC will start to contact customers living in Scotland where records show that this is their main address, to inform them they have been identified …

Marriage allowance

Combine your Tax Free Allowance                                                How it works If you’re married or in a civil partnership and one of you earns less than £10,600 you could benefit from the new Marriage Allowance. Marriage Allowance lets you transfer …

Tax newsletter October 2015

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues. We hope you enjoy reading the newsletter; remember, we are here to help you so please contact us if you need further information on any of the topics covered. BUYING A BUSINESS? NO RELIEF FOR GOODWILL NOW Ever since April 2002 when a limited …

National Minimum Wage rise

The National Minimum Wage Rates will rise from 1 October 2015 to: £6.70 – the main rate for workers aged 21 and over £5.30 – the 18-20 rate £3.87 – the 16-17 rate for workers above school leaving age but under 18 £3.30 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year …

Change to dividend income taxation

The following is a Factsheet published by HMRC on 17 August outlining a change to Dividend income taxation. 1. Summary From April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income …