Budgets

De-coding tax codes

Accounting, National Insurance, Payroll, Personal Tax l

Tax-codesA tax code (also known as a PAYE code) appears on every payslip, but do you know what it means and how it is impacting on the net pay you are receiving?

Common tax codes include ‘BR’, ‘1100L’, ‘NT’, and ‘D0’, but what do these mean and what if they are wrong? HMRC expects everyone with a PAYE code to check it but do you and your employees (if you have them) realise this, and know where to start?

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A month today – changes to the National Minimum Wage/Living Wage & to the penalties for not complying

Accounting, Budgets, National Insurance, Payroll l

A wage packet– In amongst playing pranks on your nearest and dearest, 1st April 2016 also sees changes to the National Minimum Wage (NMW) and introduction of the National Living Wage (NLW) for employees aged 25 and over.

 

From 1st April 2016 the minimum rates of pay are

– Age 25+ – £7.20 per hour (the National Living Wage)

– 21-25 – £6.70 per hour

– 18-21 – £5.30 per hour

– <18 – £3.87 per hour

– Apprentices – £3.30 per hour

In addition to these changes, the penalty payable by employers who underpay is being increased from 100% to 200% of the underpayment due to each worker.

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The good, the bad and the ugly (of the autumn statement)

Accounting, CGT, Law, National Insurance, Payroll, Personal Tax, Property l

goodThe dust has settled on the autumn statement, and it is now clear on the good, the bad and the ugly effecting SME’s, employers and self-employed.

 

The Good!

National Insurance employment allowance increased to £3,000 from April 2016

Extension of the doubling of small business relief rates to April 2017 (good news – make sure you have this if you operate from an office)

The Bad!

3% additional stamp duty land tax will be charged on second homes or investment properties purchased from April 2016, which in added to the reduced relief for interest previously announced from April 2017 is a double hit for active investors

3% differential on Benefit in Kind for diesel cars retained from April 2016 for 5 more years

The Ugly!

Capital gains tax due to be paid within 30 days of completion of any disposal of residential property from April 2019. This ties in with the introduction of digital tax accounts for most taxpayers.

If you have any queries or concerns arising from the autumn statement, contact our team at Morrell Middleton on 01904 691141.

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FREE AUTO ENROLMENT & XERO ACCOUNTS SEMINAR (AND LUNCH)

About Us, Accounting, Businesses, National Insurance, Payroll, Pensions, Personal Tax, VAT, Xero l

xero-logo-hires-RGBPension-PeopleAuto Enrolment – everything you need to know about it and the lack of time you have to implement it!

Xero Online Account – How to keep your books sitting on a beach in Hawai whilst drinking cocktails!

Morrell Middleton have teamed up with Ardent Financial advisers to discuss the in’s and out’s of implementing the Governments solution to the pensions crisis – Auto Enrolment.

The rules will apply even to individuals who employ just one person, such as a nanny or gardener. Employers will have to enrol workers who are classified into 3 areas, Entitled Worker, Non-Eligible Jobholder and a Jobholder. Who is which and what you have to do for them is all in our notes!

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Do you have a clear vision of 2020?

Accounting, Budgets, Businesses, Growth, National Insurance, Payroll, Pensions l

FutureThe TV programmes of many of our youths conjured images of the year 2020 seeing us living a life of plentiful leisure time, a fashion of shiny silver suits and an army of robots taking care of all our needs.

It is clear (to most of us at least!) that this isn’t how 2020 will look, however we do know how some key aspects of our businesses will look.

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