Year End Pension Planning

Take advantage of the pension carry forward rules in order to benefit from any unused allowances from the previous three tax years.  This is generally the difference between the old £50,000 annual pension allowance and your pension input that year and can be added to your relief for 2015/16.  Note that the annual pension allowance...

Tax Charge on Annuity Sales to be Reduced from April 2017

The Government has confirmed that from 6 April 2017, tax restrictions for people looking to sell annuities will be removed, giving those with existing annuity, and anyone who purchases an annuity in the future, the freedom to sell their right to future income streams for an upfront cash sum. Currently, people wishing to sell their...

Single Director Companies Excluded From £3,000 NIC Employment Allowance

From 6 April 2016 the Employment Allowance increases from £2,000 to £3,000, but if you’re the only employee in a company, and also the director, your company will no longer be eligible for the NICs Employment Allowance. HMRC is currently consulting on the draft legislation for this change which will mean that the £3,000 allowance...

RTI Concessions for Small Employers to End from 6th April 2016

The Government announced at Autumn Statement 2015 that the current two year temporary reporting relaxation will end as planned on 5 April 2016. The relaxation permitted employers who at 5 April 2014 employed no more than 9 employees, to report their PAYE information for the tax month ‘on or before’ the last payday in the...

National Insurance Rates Frozen for 2016/17|Autumn Statement 2015

There will be no increase in the rates of national contributions (NICs) for employers, employees nor the Class 4 rate for the self-employed for 2016/17, although the Upper Earnings Limit for employee contributions and Upper Profits Limit for Class 4 contributions will be increased to £43,000, in line with the higher rate tax threshold. Employees’...

Car and Fuel Benefit Charges|Autumn Statement 2015

Diesel company cars currently carry a 3% supplement on the percentage of list price used to calculate the taxable benefit. This diesel supplement was to be removed from 6 April 2016, but it will now stay in place until 2020/21. Employees and directors with company cars, and who also have some or all of their...

Stamp Duty Land Tax Increases|Autumn Statement 2015

In the Summer Budget the Chancellor announced a restriction on the deductibility of interest from rental income for individual landlords of residential property. This restriction will be phased in from 2017/18 to 2020/21, and it may make letting uneconomic for landlords whose businesses are relatively highly geared. The latest attack on property investors is a...

CGT Will Have to Be Paid Earlier|Autumn Statement 2015

CGT is normally payable by individuals by 31 January after the end of the tax year in which the gain arose. This gives the taxpayer between 10 and 22 months from receipt of the proceeds to calculate the tax due and pay it over to HMRC. From 6 April 2015 non-resident taxpayers have had a...

Tax Credit U-Turn|Autumn Statement 2015

In the Summer Budget the Chancellor proposed cutting the rates and thresholds for working and child tax credits. This would have reduced the income of many low-paid families significantly. The House of Lords blocked the legislation which was to have introduced this change. The Chancellor has now announced that the rates and thresholds for tax...

How can SME’s Proactively Tackle the Digital Skills Gap & Barriers to Growth?

In Spring 2015 The Federation of Small Businesses undertook a survey of their members with the results showing how small firms are having a substantial impact on the UK’s growing economy. However the results also showed a sharp rise in businesses recording a lack of skills as a barrier to growth. Statistics by FSB and...