The Autumn 2024 Budget introduced significant changes that will affect employer National Insurance contributions starting on 6 April 2025
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…
Read articleAutumn budget 2024: Key announcements
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…
Read articleIdentifying Fake HMRC Letters: How to Verify Their Authenticity
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…
Read articleVAT Flat Rate Scheme – Is It Right for You?
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…
Read articleTax Return Requirements for Wealthy PAYE Taxpayers
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…
Read articleStarting Your Own Business as a Sole Trader: Key Points to Consider
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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