Category: Tax

What was announced in the Autumn Statement 2023?

Yesterday, the Chancellor unveiled the Autumn Statement, packed with measures to boost the economy. There’s a lot to unpack for those managing finances or working with a financial planner. Let’s dive into the fundamental changes and see how they might affect you. National Insurance Adjustments – Potential Savings for Individuals For Employees: The Class 1

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What was announced in the 2022 Autumn Budget?

On 17 November, the fourth chancellor of the year delivered his Autumn Statement. Jeremy Hunt aimed to use the Autumn Statement to calm markets and reset public finances. Much of what was stated had been expected. Once again, there was a focus on so-called stealth taxes. These came either through the further freezing of allowances,

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What was announced in the mini-budget?

Kwasi Kwarteng, in his new role as chancellor, unveiled his plans for growth, bringing down inflation, backing businesses, and helping households. Although much of its content was already known, it still contained a few surprises. What changes have been made to personal taxation? The mini-budget has delivered a variety of tax cuts, including: Income tax:

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Is salary sacrifice more attractive since the introduction of the Health & Social Care Levy?

We have written previously about how employees exchanging part of their salary and/or bonus for increased pension contributions has become common. We explained how this can be far more attractive than the employee making a direct pension contribution on his/her own behalf. Attractions of salary sacrifice Contributions paid out of an employee’s after-tax pay are

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Do the recent tax changes mean I should look at taking a dividend or bonus from my business again?

The social care announcement on 7 September 2021 increased both national insurance (NICs) and dividend tax from 2022/23. In addition, the March Budget revised corporation tax rates from 2023/24. The combined effect of these announcements might shift the decision of whether to take a dividend or not from your business. We have looked at some examples to see where these shifts might have taken

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What is the new Health and Social Care Levy?

To begin with, it is worth a quick reminder of the current social care position in England: (Wales, N. Ireland and, in particular Scotland, have their own variations on the theme): There is a £23,250 capital means test ceiling, above which all care costs must be met by the individual: the self-funding route. For those with wealth between

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What is salary sacrifice?

It has become common practice for employees to exchange part of their salary and/or bonus in return for their increasing the pension contribution they pay by the same amount. This can be far more attractive than the employee making a direct pension contribution on his/her own behalf, particularly if the employer is prepared to increase

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Should I start my year-end tax planning now?

Last year, Autumn arrived without an Autumn Budget. In fairness, the Chancellor, Rishi Sunak, had already presented one 2020 Budget. This took place last March, and the pandemic made forecasting for 2021/22 all but impossible. The result was that, for the second year running, the Budget was deferred to the Spring. Whether Mr Sunak’s job

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How should I take my profits from my business?

When business owners choose how to take their profits, there is a compelling argument in favour of pension contributions. Dividends may still be the preferred route for most. However, changes in how they are taxed may drive more directors who do not need the income to use employer pension contributions instead. Remember, since April 2018,

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Am I going to have to pay more Capital Gains Tax?

In July 2020, the Chancellor asked the Office of Tax Simplification (OTS) to review Capital Gains Tax (CGT). The aim was to ‘identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent’. The review has attracted strong engagement from

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Can I get tax relief for working from home?

Employers can pay employees up to a maximum of £6 per week tax-free, to cover additional costs they may have incurred because of working from home. Where employers have not paid their employees the home expenses payment, individuals can claim this tax relief through a new online portal. More than 54,800 claims have been made

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How could Capital Gains Tax change?

As well as reviewing the operation of capital gains tax (CGT), the Chancellor asked the Office of Tax Simplification to consider “opportunities to simplify the tax”. What changes could emerge and what could this mean for financial planning strategies for our clients? Charging capital gains made by individuals to income tax If you are taxed

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Could we have a wealth tax in the UK?

It is no secret the Government debt has reached epic levels. With interest rates being as low as they are, it is accepted that servicing the debt may not be as challenging as the size of the debt would (superficially at least) indicate. Low to negative yield Government Bonds (Gilts) are being bought by the

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How does the 2020 Budget affect me?

It is an unbelievable 500 days since the last Budget in October 2018. The Chancellor, Rishi Sunak, has only been in the job a few weeks and to say the Budget will have represented a challenge for him is a massive understatement. Even more so given current world events. Budget Day started with an announcement

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