From 6 April 2016, employers may not need to pay Class 1 National Insurance contributions for an apprentice, if the apprentice: If the apprentice meets the conditions above, then the employer is exempt from National Insurance employer on the apprenticeship gross salary. Employees will continue to pay the standard rate of Class 1 National Insurance contributions through […]

Increase in NI Employer Rates and Thresholds Currently, employers pay secondary class 1 NIC at the rate of 13.8% on the amount by which an employee’s earnings exceed the secondary threshold (ST) of £9,100 per year/£175 per week.  At the Budget, it was announced that the rate will be increased to 15%, and that the […]

The Chancellor Rachel Reeves delivered the new government’s first Budget on 30 October 2024 announcing tax rises worth £40bn. Below is a summary of all the key points. Personal taxes Business taxes Wages and pensions Housing Other key points

Creating a business tax account with HMRC is crucial for managing your taxes online. Follow these steps: 1. Gather Required Information Before you begin, make sure you have: 2. Access the HMRC Website Visit the HMRC website to begin the process. 3. Create a Government Gateway Account If you don’t have a Government Gateway account: […]

1. Gift Aid Donations Gift Aid allows charities to claim an extra 25p for every £1 donated. This means your donation can be boosted without any extra cost to you. To qualify, you must pay at least as much tax as the charity claims. If you’re a higher-rate taxpayer, you can claim additional tax relief […]

What is Child Benefit? Child benefit is a government-provided allowance for each child at fixed rates. However, if your income exceeds certain thresholds, you may be subject to the High Income Child Benefit Charge (HICBC), which can reduce or eliminate this benefit. Changes to HICBC Thresholds From 6 April 2024, the HICBC threshold will rise […]

Introduction A UK resident must declare on their UK tax return any worldwide income they received in that tax year and pay UK tax on this income. However, if they have already paid foreign taxes on this income, they may have the possibility to claim a foreign tax credit (FTCR) to reduce any UK tax […]

Introduction Under the cash basis, income and expenses are recorded based on the date the money is received or paid. Under the accrual’s basis, income and expenses are recorded based on the invoice or bill date. Since the 2017-18 tax year, cash basis has been the default basis for most property businesses that are run […]

There are various tax allowances that maybe relevant when calculating your self-employment business expenses for your UK tax return. These allowances are only relevant if you use the accruals basis when presenting your income/expenses, not the cash basis option. Annual investment allowance (AIA) If you purchase items for your business that will last for 2 […]

If an employer provides an employee with trivial benefits and all the following conditions are met this benefit is exempt from tax and NI Cost less than £50 This amount is NOT an allowance, rather it’s an exemption, therefore you can provide various gifts during the tax year for less than £50 and it will […]