Spring Budget tax update

Attack on self-employed in budgetIn 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 ...

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 …