If you own a personal or family company, it’s worth reviewing your dividend strategy before the 2024/25 tax year concludes. In particular, you may want to decide whether paying a dividend ahead of 6 April 2025 could be to your advantage. In this case consider the following points: 1. Check Your Retained Profits Dividends can…
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1. Increase in Secondary Class 1 National Insurance Rate: Current Rate: Employers currently pay 13.8% in secondary Class 1 National Insurance contributions on employee earnings above the secondary threshold. New Rate: Starting 6 April 2025, this rate will rise by 1.2 percentage points, from 13.8% to 15%. This is a substantial increase that will impact…
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Promising not to increase taxes for ‘working people’, Chancellor Rachel Reeves today unveiled increases to capital gains tax and employer’s national insurance but unfroze the personal tax thresholds from 2028 in a Budget aimed at repairing the public finances. Below are details of some of the key announcements from today’s budget: Taxation and Business: £40bn…
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Scammers are increasingly skilled at deceiving individuals, often using letters, texts, or emails that seem to come from HMRC and frequently promise tax refunds in exchange for personal and financial information. Recently, many taxpayers received a convincing scam letter allegedly from HMRC’s Individuals and Small Business Compliance scheme. This letter requested sensitive information, including business…
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The VAT flat rate scheme is designed to simplify VAT reporting for smaller VAT-registered businesses. Instead of calculating the difference between the VAT charged to customers and the VAT paid on business expenses, businesses in the scheme pay a fixed percentage of their VAT-inclusive turnover directly to HMRC. This percentage varies depending on the business…
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Earlier this year, HMRC reached out to wealthy taxpayers who had not filed tax returns for the 2020/21 and/or 2021/22 tax years. The letters were sent to individuals who had submitted returns for 2020/21 and 2022/23 but not for 2021/22, or for those who had filed returns for 2019/20 and 2022/23 but not for 2020/21…
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Your business setup affects the taxes you owe and the reports you need to file. If you’re running the show by yourself without forming a company, you’re a sole trader. On the other hand, if you run your business through a personal company, even if you’re the only employee and director, the company is its…
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In the current tax year, you can enjoy some savings income tax-free within certain limits. The availability of these tax-free routes depends on your tax rate. The New Savings Allowance Both basic and higher rate taxpayers have a savings allowance in addition to their personal allowance. For the 2024/25 tax year, the savings allowance is…
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Many people earn small amounts of money from self-employment, often as a side hustle. For example, this may be from craft or baking activities, tuition or the provision of services, such as babysitting. If you earn money in this way, it is important to understand the associated tax and National Insurance implications. Tax consequences A…
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On March 6th, the Chancellor presented the highly anticipated Spring Budget 2024, introducing a range of measures aimed at bolstering economic growth, improving public services, and tackling immediate challenges while laying the groundwork for long-term sustainability. Here’s a breakdown of the key takeaways: Tax Relief for Working Families In a bid to reward hardworking families,…
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