Health and Social Care levy

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 […]

Tax exemptions on gifts & inheritance tax

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

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 […]

PAYE vs Umbrella

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 legislation changes April 2021

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 […]

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