Employee Tax codes for 2023-24 HMRC have announced that there will be NO uplifts of tax codes for tax year 2023-24. The ‘standard/emergency’ tax code for 2023-24 remains at 1257L. (S1257L in Scotland, C1257L in Wales). Income tax rates and thresholds for 2023-24 The table below shows the income tax rates and thresholds in use for England, Wales and Northern Ireland. The threshold […]
The Chancellor, Jeremy Hunt, unveiled his Spring Budget today. While the big headlines were the expansion of free childcare, the scrapping of the lifetime allowance on tax-free pension contributions and the extension of energy bills support for households, several other announcements will affect small businesses. The key highlights of this spring highlights are as follows: Corporation Tax The Chancellor confirmed […]
The Chancellor, Jeremy Hunt says the government will deliver a plan to tackle the cost of living crisis and rebuild the UK economy. He added his priorities are stability, growth, and public services, and is providing “fair solutions” despite taking “difficult decisions”. However, the majority of the attention is centered on creating a balance between tax increases and spending cuts […]
As an employer you can give tax-free gifts to your employees provided that they satisfy the following four conditions: The total cost to the business is £50 or less to provide Note: if the gift exceeds £50, for example, the gift was £45 and the postage cost was £6.99, then the whole amount of £51.99 would become taxable. No cash […]
It was on 7 September 2021 that we first heard about a new 1.25% Health and Social Care Levy, imposed on employers, employees and the self-employed, coming in from 2023/24. Further, this was to be effectively accelerated into 2022/23 by a 1.25 percentage point rise in National Insurance contributions (NICs). As expected, and despite changes to thresholds earlier this year, […]
The Government has announced a temporary increase in national insurance contributions (NICs) and dividend tax rates, this will increase by 1.25 percentage points across the UK from April 2022, this will affect both employed and self-employed workers. Shareholder(s) receiving dividends will also be affected. From 2023, the health and social care levy element will then be separated out and the […]
What is classed as a gift according to HMRC? anything that has a value, such as money, property, possessions a loss in value when something’s transferred, for example, if you sell your house to your child for less than it’s worth, the difference in value counts as a gift Tax-exempt gifts Each donor has a total annual exemption of […]
P60 is an end-of-year payroll process that spans over the fiscal year (6 April – 5 April) this document contains the total payroll figures for the year. All employers are responsible for providing a P60 by 31st May following the tax year. This is for employees employed on 5 April. Why is a P60 Required? P60 is required for multiple […]
With the changes in IR35, those caught ‘inside IR35’ commonly ask which is the most lucrative option out of these two? This depends on the remuneration package that is on offer for each contract PAYE Remuneration packages tend to be less in comparison to umbrella companies, however, employers are factoring in the employer’s national insurance contributions of 13.8%. Income […]
IR35 is legislation introduced to prevent disguised employment, what this means is that HMRC is not going to allow contractors using a limited company for the purpose of tax relief when they are actually considered to be employees. In most cases, individuals tend to fall outside IR35 rather than inside IR35. Inside IR35 is defined as a contractor caught within […]