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 […]

Booming Gaming Industry in Leamington Spa

Leamington Spa is often referred to as ‘Silicon Spa’ due to its thriving technology and digital sector, particularly in video game development. The nickname draws a parallel between Leamington Spa and Silicon Valley in California, which is renowned as a global hub for technology innovation. What are the new tax reliefs for Video Games? Tax […]

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, […]

Prepare for change: navigating upcoming payroll adjustments

National Minimum Wage and National Living Wage increase In the latest Spring Budget update, it was announced that starting from 1 April 2024, both the National Living Wage (NLW) and the National Minimum Wage (NMW) will undergo a rate increase per hour. The NMW stands as the minimum hourly rate that nearly all employees are […]

Update: HMRC issues revised guidance on taxation for double cab pickups

It was announced on Monday 12 February 2024, that HMRC had updated its guidance on the tax treatment of double cab pickups (DPUCs) following a Court of Appeal judgment in 2020. Initial guidance indicated that these vehicles would be treated as cars rather than goods vehicles for tax purposes starting from 1 July 2024. What […]

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 […]

Update: HMRC cracks down on taxable side hustle earnings from online sales

The term “side hustle” is commonly used to describe any part-time endeavour with the intention to generate additional income alongside your main job, and these activities can be carried out on a large variety of marketplaces including Etsy, Airbnb, Depop, and many more.   What are the recent developments regarding side hustles? This is not […]

Are employee parties tax-free?

If the rules around social functions are followed, employee events like your end-of-year party, or your summer barbecue are tax-deductible for you, as the employer, and tax-free for your staff. Whether your party is taking place in the office, at a local restaurant or via Zoom for your remote-working teams, you can be confident that […]

Tax on gifts to employees and directors

Not sure about the tax implications of giving gifts to your employees? We’ll help you draw up internal guidance to make sure any gifts don’t unintentionally fall outside HMRC’s Trivial Benefits rules.   Can directors and employees receive gifts from the company tax free? Giving gifts to your employees can be a great way to […]

How do capital allowances reduce your tax bill? Autumn Statement update

Generally speaking, the business expenses you incur are allowable against your profits. But when it comes to fixed asset purchases (items such as machinery, equipment or vehicles), these purchases are treated slightly differently. To reduce your tax bill when purchasing fixed assets, it is important to know what capital allowances are available and how you […]