Understanding Simple Assessments and the impact of the Triple Lock
In recent months, the issue of tax liabilities from the Government’s Triple Lock policy has gathered significant attention from pensioners receiving the state pension. With annual increases, some pensioners are now surpassing their tax-free personal allowances, leaving many who have not faced tax liabilities for years suddenly receiving a Simple Assessment from HMRC. While this […]
Christmas bonuses: a guide for employers
As the festive season approaches, employers often seek ways to acknowledge their employees’ hard work throughout the year, with Christmas bonuses being a common method. This article explores key considerations for giving these bonuses to help you make informed decisions about rewarding your team. Understanding Christmas bonuses and their role A Christmas bonus can be […]
HMRC redesign IHT100 forms to simplify reporting
HMRC recently introduced a redesigned IHT100 suite of forms, aimed at simplifying the reporting of chargeable lifetime transfers by individuals and transfers made by trusts. Previously, individuals needed to complete both an IHT100 form and a separate ‘event’ form, depending on the type of transfer. This system was complex, involving different forms for various charges, […]
The FHL regime is coming to an end: what this means for property owners
The recent confirmation of the abolishment of the Furnished Holiday Lettings (FHL) regime has brought significant changes for property owners to consider. It was announced by then-chancellor, Jeremy Hunt, in the 2024 Spring Budget, that the FHL regime will officially end from 6 April 2025 for Income Tax and Capital Gains tax and from 1 […]
Exploring the upcoming changes to Vehicle Excise Duty for electric vehicles
Vehicle Excise Duty (VED) is a crucial part of the UK’s tax system, contributing to the maintenance of our road infrastructure. As part of the government’s commitment to a fair and sustainable tax regime, significant changes are on the horizon for electric vehicles (EVs). From 1 April 2025, EVs will no longer benefit from VED […]
Navigating change: the impact of abolishing the non-dom tax regime
What is the non-domiciled status? The non-dom regime has enabled UK residents who are domiciled outside the UK to benefit from the remittance basis of taxation, where they are only taxed in the UK on their UK source income/gains and any foreign income/gains that have been ‘remitted’ to the UK. This system has provided many […]
Navigating tax rules for gifts to employees and directors
Giving gifts to your employees can be a great way to increase engagement and raise the overall morale of your team, but how much can you give before tax is incurred? And how do the rules differ if you are giving gifts to your directors? In the UK, giving gifts can potentially attract tax liabilities […]
Class 2 NIC payments incorrectly refunded by HMRC
Several reports to the Association of Taxation Technicians have highlighted unexpected refunds of voluntary Class 2 National Insurance Contributions (NICs) that were paid for the 2022/23 tax year, potentially having a detrimental effect on those self-employed individuals, who made voluntary payments, and had profits under £6,725. For voluntary Class 2 NICs to apply and provide […]
Could you be eligible for Marriage Allowance?
Marriage Allowance enables you to transfer £1,260 of your personal allowance (usually £12,570) to your husband, wife, or civil partner provided neither of you are a higher rate or additional rate taxpayer. By doing so, this reduces their tax by up to £252 in the tax year. Who is eligible? To qualify for Marriage Allowance, […]
Owners of Airbnb and other short-term let properties will be required to obtain planning permission before renting out rooms
From this Summer, the government plans to implement laws mandating that owners of newly established short-term rental properties in England must obtain planning permission for rental purposes. This measure aims to empower councils in regulating the number of licenses granted within a specific area and can be seen as an extension to the system that […]
Have you received your full entitlement of tax relief on your pension contributions?
Most occupational pension schemes (e.g. employer operated pension schemes) typically deduct contributions under Net Pay Arrangements and personal pension schemes will make deductions under ‘Relief at Source’. However, it should be noted that this is not always the case. For example, Nest, the Government-backed workplace pension scheme, operates a Relief at Source scheme, and many […]
Recent HMRC developments and changes to Class 1 NICs for motoring expenditure
The Upper Tribunal case of Wilmott Dixon and Laing O’Rourke put the spotlight on HMRC’s interpretation of the definition of ‘relevant motoring expenditure’ (“RME”) and the disregard for Class 1 NICs. Historically, HMRC has taken a relatively narrow view on the type of motor expense payments that qualified as RME, with the Upper Tribunal taking […]
