The government have launched a new website aimed at parents who may be able to claim for support with childcare costs. The web address is https://www.childcarechoices.gov.uk/. How Tax-Free Childcare works Working parents will be able to apply, through the childcare service, to open an online childcare account. For every £8 that families or friends pay in, the Government will make a top-up payment...
Muras Matters: 6 reasons to pay a pension contribution before the end of the tax year
6 reasons to pay a pension contribution before the end of the tax year Pensions continue to represent an important and tax efficient way of saving for retirement and there are a number of reasons to consider making a payment, or additional payments, into a pension scheme before the end of the tax year. Consideration of whether to make payments is...
Follow companies for free
If you want to keep an eye on documents filed with Companies House for a particular company, you can register for a new service that will do just that at Companies House. The new service is called “Follow” and it allows you to receive email alerts. Follow lets you receive email alerts of company transactions. The alert tells you instantly what...
Reduction in the dividend allowance
Unless there are further political objections, one of the few remaining revenue raising changes in the recent spring budget was the reduction in the £5,000 dividend allowance from April 2018. From this date the allowance will drop to £2,000. This measure will increase the tax charge for investors with significant, quoted share portfolios and the director/shareholders of private companies who minimise their...
Muras Matters: New Apprenticeship Levy
New Apprenticeship Levy Background The way the government funds apprenticeships is changing. Some employers will be required to contribute via a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers. Details The Apprenticeship Levy takes effect from 6 April 2017 and applies to employers with a pay bill of £3 million or more. It is calculated...
Making Tax Digital – a step closer
Another matter that received some clarification last week was the government’s move to implement MTD for the self-employed from April 2018. When the scope of MTD was first published it was proposed that the self-employed (including unincorporated property businesses) would need to commence the quarterly upload of summarised accounts data, direct to HMRC’s digital accounts, from April 2018. In the budget last...
Self-employed NIC increase
Although there was little of substance to Philip Hammond’s budget last week, one particular issue caused some political controversy. It was the proposal to increase the National Insurance contributions for the self-employed from 9% to 11% over a two-year period starting April 2018. From this date, April 2018, the weekly Class 2 contributions will be scrapped and the scope of Class...
Muras Matters: Changes to the Taxation of Salary Sacrifice Arrangements
Changes to the Taxation of Salary Sacrifice Arrangements Background Salary sacrifice arrangements broadly operate by enabling employees to exchange part of their cash remuneration, on which PAYE and NIC is due, for non-cash benefits which may be wholly or partially exempt from tax and NIC. The resultant savings may be passed on to the employee, retained by the employer, or shared. The...
Employment boost for older workers
A new strategy is calling on employers to boost the number of older workers and ensure they are not writing people off once they reach a certain age, helping to build a country that works for everyone. It’s estimated that by mid-2030s people aged 50 and over will comprise more than half of the UK adult population. The government is encouraging people...
Budget Statement 8 March 2017
Personal Tax and miscellaneous matters Personal Tax allowance The personal allowances for 2017-18 is £11,500 (2016-17: £11,000). Transferrable allowances The maximum amount of free personal allowance that can be transferred between spouses is increased to £1,150 in 2017-18. Couples can only make a claim if one partner has spare personal tax allowance and the other is a basic rate tax payer. Income Tax rate bands The...