Mandatory payrolling of benefits delayed
HMRC has confirmed that the mandatory payrolling of benefits in kind (BIKs) will be delayed to April 2027, giving businesses more time to get to grips with the process. Previously planned for April 2026, the change will require businesses to report and process income tax and Class 1A national insurance contributions on BIKs in real […]
Class 2 National Insurance calculation error
From the 2024-25 tax year, self-employed individuals with profits in excess of £6,725 no longer need to pay Class 2 national insurance contributions (NIC). Instead those taxpayers will receive a national insurance credit to secure their access to contributory benefits such as the state pension. Several of the professional bodies have received reports from their […]
Multi-agent access for MTD IT
Making Tax Digital for Income Tax (MTD IT) is fast approaching, with the mandation date for sole traders and landlords with qualifying income of £50,000 and above set firmly at 6.4.26. In addition to the annual tax return, those mandated to comply with the MTD IT requirements will need to submit cumulative quarterly updates of […]
Check Employment Status for Tax tool
The Check Employment Status for Tax (CEST) tool allows contractors and other individuals providing services – or businesses engaging workers to perform services for them – to determine whether the work should be treated as employment or self-employment for tax purposes. The responsibility for determining the employment status will fall on the business if it […]
Guidance for non-doms
With effect from 6.4.25 the preferential tax treatment enjoyed by UK resident individuals whose permanent home is outside the UK (‘non-doms’) has been withdrawn. Before this date, non-doms could benefit from the remittance basis of taxation for up to fifteen years, essentially exempting their offshore income and gains from UK tax unless remitted to the […]
Small employers’ relief
Small employers can usually recover 100% of most of the statutory payments they make to employees plus compensation from HMRC. If your business qualifies for small employers’ relief you can claim 103% of almost all statutory payments made to employees until 5.4.25. From 6.4.25 this was increased to 108.5% in line with changes to employer’s […]
Childcare costs – don’t miss out!
Tax-free childcare Many working families will now be arranging childcare for the school summer holidays and the start and end of the school day from September. The Government’s tax-free childcare scheme could provide up to £2,000 a year per child, or £4,000 if the child is disabled, towards the cost of wraparound childcare and holiday […]
Salaried members of LLPs
The salaried members rules are an anti-avoidance measure designed to prevent limited liability partnerships (LLPs) from disguising remuneration paid to members as profit share instead of employment income. If the rules are triggered, the member’s earnings are subject to PAYE and national insurance as though they were an employee. A member of an LLP is […]
