Payment of pension arrears could mean tax bill A large number of people have been underpaid their state pension. Payment of what’s owing is underway but if you receive such a payment, it may give rise to an income tax bill. What’s the issue? The state pension arrears identified so far exceed £300 million, mainly ... Read More
Spring Statement 2023 – Introduction Chancellor Jeremy Hunt delivered a ‘Budget for Growth’ after the Office for Budget Responsibility forecast a stronger than expected performance from the UK economy this year with inflation continuing to fall. Driving business investment The Chancellor announced a £27 billion transformation of capital allowances from April this year, which will include ... Read More
Spring Budget 2023 – Personal Tax The personal allowance The income tax personal allowance was already fixed at the current level until April 2026 and will now be maintained for an additional two years until April 2028 at £12,570. The government will uprate the married couple’s allowance and blind person’s allowance by inflation for 2023/24. ... Read More
Spring Budget 2023 – Employment National Insurance Contributions (NICs) A similar principle to that outlined above for income tax thresholds will be followed in respect of many of the NICs thresholds, namely that they are frozen at the limits for the preceding year and will remain at those levels until 2028. Full details are laid ... Read More
Spring Budget 2023 – Business Corporation tax rates The expected increase in the rate of corporation tax for many companies from April 2023 to 25% will go ahead. This means that, from April 2023, the rate will increase to 25% for companies with profits over £250,000. The 19% rate will become a small profits rate ... Read More
Spring Budget 2023 – Capital Taxes Capital gains tax (CGT) rates No changes to the current rates of CGT have been announced. This means that the rate remains at 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains, ... Read More
Spring Budget 2023 – Other Matters Back to work Major themes in the Budget were getting people to enter work, increase their working hours and extend their working lives. These include numerous proposals detailed below. Childcare Working parents in England will be able to access 30 hours of free childcare per week, for 38 weeks ... Read More
Deadline for voluntary NI contributions extended There’s currently a window of opportunity to fill gaps in your NI contribution history. This was scheduled to close after 5 April 2023, but the government has now extended it. What’s the new deadline? Entitlement to the state retirement pension depends on accruing sufficient qualifying years – those where ... Read More
Year End Tax Planning Guide Read the Full Guide on our Year End Tax Page In all things tax, time is of the essence. Checking that your personal affairs, your family and business affairs, and your plans for the long term are arranged as tax efficiently as possible is always important: and the period before ... Read More
Why consider paying voluntary Class 2 NI via tax returns? Class 2 NI is paid by the self-employed. If your profits were adversely affected by the pandemic in 2021/22, you might be below the small profits threshold. How can you ensure you preserve your entitlement to the state retirement pension if so affected? Self-assessment collects ... Read More
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