From 6 April 2016 the Employment Allowance increases from £2,000 to £3,000, but if you’re the only employee in a company, and also the director, your company will no longer be eligible for the NICs Employment Allowance. HMRC is currently consulting on the draft legislation for this change which will mean that the £3,000 allowance […]
Payrolling of Benefits In Kind & Collection of unpaid Tax through your Tax Code!
Payrolling Benefits In Kind Legislation to require employers to report Benefits in Kind in real time as opposed to the end of year form P11D was included in the first Finance Act of 2015. However, there are concerns amongst accountants that this should not be mandatory until 2017/18 at the earliest, as many employers are […]
Company car advisory fuel rates
These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. The rates that apply from 1 September 2015 are shown below, with the previous quarter’s rates shown in brackets, if changed: Engine Size Petrol […]
Updated guidance on Employee Travel (Booklet 490)
HMRC have updated their guidance on employees’ travel and subsistence in booklet 490, available on the Gov.uk website. The publication provides numerous examples illustrating which journeys do and do not qualify as business journeys and are eligible for tax relief. No tax relief is available for ordinary commuting or private journeys. Ordinary commuting is where […]
Creating a healthy workplace
We all know how important the work environment is in terms of productivity, creativity and job satisfaction. All businesses strive, or should strive to achieve a healthy work environment for their employees. But what constitutes a healthy work environment? Literal health, as in good ventilation, natural lighting and lots of plants? Psychological health, as in […]
Pension Tax Relief restricted for higher earners
As mentioned in the Conservative party manifesto, tax relief for pension contributions is to be restricted for those with income in excess of £150,000 a year. We were told that this is intended to fund the increase in the inheritance allowance for passing on the family home. The current £40,000 pension annual allowance will be […]
Changes to taxation of dividends & the impact on family companies
The Chancellor has announced that from 6 April 2016 there will no longer be a notional tax credit associated with dividends received and the following rates will apply after a £5,000 tax free dividend allowance: Basic rate taxpayers – 7 ½% Higher rate taxpayers – 32 ½% Additional rate taxpayers – 38.1% This will mean that from […]
New company car advisory fuel rates
Company car advisory fuel rates These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. In line with an increase in fuel prices, the rates that apply from 1 June 2015 are as follows: Engine […]
Clarification finally issued on new dividend tax!
Following the announcement in the Summer Budget of a major change to the taxation of dividends, HMRC has now published a factsheet which clarifies the rules. How will they work? Changes to taxation of dividends In the Summer Budget the Chancellor dropped a bombshell for owner managers of smaller companies by stating that, from April […]