Budgets

Travel and subsistence

Budgets l

Many employees need to travel as part of their job for various reasons, whether it’s acquiring new customers, working with current ones or attending conferences and events.
The system of benefits and taxation surrounding this essential economic activity is classed as ‘travel and subsistence’ in the eyes of the taxman.

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.

Minimum wage increases from 1 October 2015

Budgets, Law, Payroll l

A wage packetFrom 1 October 2015, the national minimum wage rates increase by between 2% and 20% with our youngest employees being both the biggest winners and losers depending on how they are employed.

 

 

– Apprentices * – £3.30 (up from £2.73) – up 20%

– Under 18’s – £3.87 (up from £3.79) – up 2%

– 18 to 20 year olds – £5.30 (up from £5.15) – up 3%

– 21 years and older – £6.70 (up from £6.50) – up 3%

If you have any queries on the minimum wage or running your payroll, please don’t hesitate to contact our team.

Time to review your inheritance and trust fund arrangements?

Budgets, IHT, Investments, Pensions, Property l

Mortgage calculator. House, noney and document.

Thousands of families who set up “discretionary trusts” so they could leave property to children in a tax-efficient manner will miss out on the Government’s valuable new inheritance tax allowance unless they make significant changes to their will, it has been warned.

Homes left to children through a discretionary trust will not benefit from the “family home allowance”, worth up to £350,000 per couple from 2020, because assets do not pass directly to children. Discretionary trusts – the most common form of trust – were widely used in the past to minimise inheritance tax (IHT).

Pension reforms leaves an “open trap door” for 70% tax charge on withdrawals

Accounting, Budgets, Investments, Pensions, Personal Tax l

Thousands of older savers who use the new pension freedoms to pay off debts could be forced to pay 70% tax on withdrawals they expected to be tax-free if they continue to save for retirement, pension experts have warned.

A little-known quirk in the rules designed to prevent pensioners abusing the tax system means that even over‑55s with modest pensions are at risk of unwittingly breaking official savings limits. Tweaks which mean the rules now affect far more people were quietly made in April this year.

Changes to tax free child care now expected in early 2017

Budgets, CSR, Law, Payroll l

childcareOn 1st July, the government welcomed a judgment from the Supreme Court that found the government’s proposals for delivering Tax-Free Childcare to be clearly lawful.

It also confirmed that, as a direct result of the legal challenge, the scheme is now expected to launch from early 2017. The existing Employer‑Supported Childcare scheme will remain open to new entrants until Tax-Free Childcare is launched.

The end of Class 2 NIC via Direct Debit

Budgets, National Insurance, Personal Tax l

NI StampsMany people still refer to these contributions as “stamps” from the days when you actually bought a National Insurance stamp from the Post Office to stick on a card.

Nowadays the flat rate of £2.75 per week is paid either by monthly or 6 monthly direct debit, in arrears, or on receipt of a bill from HMRC.

With effect from year 2015/2016 your Class 2 NICs liability will be established within your Self Assessment Tax Return and will be payable alongside Income Tax and Class 4 NICs which are based on the level of profits from self employment.

The final direct debit payments will be taken on 10 July 2015 for the period ended 11 April 2015.

March 2015 is the month to secure financial support towards helping you grow your business

About Us, Budgets, Businesses, Growth l

graph-arrow-upwards-growthIs your ambition to grow your business, and you need support to understand:

– the amount of finance needed?

– where funding could come from?

– where do I start?

If the answer to any or all of these questions is “yes”, we are pleased to announce that our team at Morrell Middleton are able to work with you, with our costs subsidised by up to as much as 60% to answer these questions. You need to act quickly though, as some funding ends 31 March 2015 

PPI refund windfall? Don’t get caught by HMRC for undeclared tax on your income.

Accounting, Budgets, Law, Personal Tax, Tax/VAT Cases, Uncategorized l

ppi-claimsHave you or someone you know received a PPI repayment/compensation?

If the answer is yes, did you know that the interest element of what is received is taxable? Further, did you know that all the banks and building societies making payments are notifying HMR&C of who they are paying and how much? So what does this mean for you?

National minimum wage increases from 1 October 2014

Accounting, Budgets, Businesses, Growth, National Insurance, Payroll, Personal Tax l

A wage packetDon’t get caught out by the increases in National Minimum Wage which come into place from 1 October 2014.

It is also important where you have younger employees, to ensure that you make sure they get the paid at least the minimum rate as they go through the age brackets, and as an employer you don’t become guilty of paying less than minimum wage.

Full details of the rates can be found at https://www.gov.uk/national-minimum-wage-rates