National insurance contribution (NIC) changes for the self-employed announced in the Autumn Statement come in from 6 April 2024 and will be welcome news. But the reforms don’t go far enough to offset the continuing cost of frozen tax thresholds. NICs classes The self-employed currently pay two classes of NICs: Class 2 NICs are at […]
Highlights The main rate of class 1 employee national insurance contributions (NICs) will be reduced from 12% to 10% with effect from 6 January 2024. The main rate of class 4 self-employed NICs will be cut from 9% to 8% from 6 April 2024 and class 2 will no longer be required. Full expensing […]
The number of trusts filing self-assessment tax returns for 2021/22 was 37% lower than for 2003/04. The decline comes as no real surprise given the eroding advantages of using a trust and the recent requirement to register trusts with HMRC. Interest in possession trusts Interest in possession trusts have seen the sharpest decline since 2003/04, […]
HMRC has updated its guidance to clarify that there is no taxable benefit when an employer reimburses employees who charge their electric company cars at home. Previously, HMRC maintained that the relevant exemption did not apply. There is a general rule that no income tax liability arises where an employee is reimbursed for expenses incurred […]
The administration of lasting powers of attorney (LPA) is on its way to becoming fully online. In an ideal world, you should have an LPA (or its Scottish or Northern Ireland equivalent) sitting beside your will. The absence of either can complicate matters considerably for your family. Without a will, the distribution of your estate […]
HMRC is moving ahead with its ‘digital by default’ ambition by pushing VAT registration to online only. Any business unable to use the online registration service will have to call HMRC’s VAT helpline to obtain a paper registration form. According to HMRC, more than 95% of businesses already register online, but there are some circumstances […]
The 31 January 2024 deadline for submitting a 2022/23 self-assessment tax return is not far off, especially for those not yet registered. Anyone who has not previously registered for self-assessment – but needs to submit a tax return for 2022-23 – should do so as soon as possible. A self-assessment activation code can take a […]
Landlords in England and Wales might not be aware, but there is a free property alert service that monitors any significant activity on let property. There is greater risk of a property being fraudulently sold or mortgaged if the landlord lives overseas, the property is empty or if there is no mortgage. Signing up for […]
State pension increases could be outpacing inflation next April, and there’s no guarantee of the Triple Lock surviving the next election. Source: IFS. In mid-September, the Office for National Statistics (ONS) published the latest earnings data, covering the period May to July 2023. Earnings data has been the focus of much attention recently because a […]
The government’s backtracking over the introduction of energy performance targets for property let out in England and Wales is facing criticism, but it will be welcome news for landlords with older properties deemed too expensive or difficult to upgrade. Let property must currently have an energy performance certificate (EPC) rated E or above. Without this, […]