Category: Employer

Comments Off on National Insurance cut boosts UK households

National Insurance cut boosts UK households

National Insurance cut boosts UK households

In a move to ease financial burdens on UK households, the Government has implemented a historic National Insurance (NI) cut, providing relief for 27 million taxpayers. As of Saturday, 6 January 2024, the main rate of National Insurance has been reduced by 2%, dropping from 12% to 10%. This reduction, exceeding 15%, equates to a … Continued

Comments Off on Advisory fuel rates December 2023

Advisory fuel rates December 2023

Advisory fuel rates December 2023

HMRC has published the latest advisory fuel rates (AFR) for company car users, which applies from the 1st December 2023. The rates for some petrol engines and all vehicles with diesel engines increased by 1p per mile. Meanwhile, LPG engine rates for 2000cc plus vehicles fell by 1p, while the advisory electricity rate (AER) for … Continued

Comments Off on HMRC removes PAYE self-assessment threshold

HMRC removes PAYE self-assessment threshold

HMRC removes PAYE self-assessment threshold

HMRC has announced a major shift in tax procedures, exempting high earners with PAYE income exceeding £150,000 from self-assessment tax returns starting in the 2024/25 tax year.  This change, following the recent threshold increase from £100,000 to £150,000 for 2023/24, is expected to benefit approximately 338,000 taxpayers. While this move appears to streamline the process, … Continued

Comments Off on Pay growth ends 18-month wage squeeze

Pay growth ends 18-month wage squeeze

Pay growth ends 18-month wage squeeze

Real wages in June 2023 were higher than a year ago for the first time in 18 months, ending a pay squeeze across Britain. Wages grew by 7.8% in the three months to June, the fastest annual rate since records began in 2001, according to figures from the Office for National Statistics. Darren Morgan, ONS … Continued

Comments Off on HMRC releases guidance on LTA abolition

HMRC releases guidance on LTA abolition

HMRC releases guidance on LTA abolition

HMRC has released guidance clarifying how it will phase in the abolition of the lifetime allowance (LTA) for pensions. As announced by Chancellor Jeremy Hunt in his Spring Budget 2023, the current £1,073,100 threshold on the LTA ended on 5 April. However, because the legislation is not included in the Spring Finance Bill 2023, the … Continued

Comments Off on Chancellor removes lifetime pension limit

Chancellor removes lifetime pension limit

Chancellor removes lifetime pension limit

The pension lifetime allowance (LTA), which limits the amount savers can contribute to their pensions without a tax charge, will be abolished, Chancellor Jeremy Hunt announced in his Spring Budget. Currently, people who save more than the current allowance level of £1,073,100 in their workplace pension scheme face a tax charge of either 25% or … Continued

Comments Off on Finance sector increases female representation

Finance sector increases female representation

Finance sector increases female representation

The finance sector is making strides in female representation, according to a new report from the Women in Finance charter. The report shows that the proportion of women in senior management roles across charter signatories rose to 35% in 2022. Nearly three-quarters of the charter’s signatories increased female representation in senior management, while 6% maintained … Continued

Comments Off on National Insurance increase reversed

National Insurance increase reversed

National Insurance increase reversed

The Government’s reversal of the National Insurance contribution (NICs) increase is now in effect as of 6 November. The majority of working people will begin receiving the 1.25% tax cut in their payslips from November onwards. The rise in NICs was introduced in April as part of the health and social care levy but was … Continued

Comments Off on National Insurance threshold increases

National Insurance threshold increases

National Insurance threshold increases

The Government is increasing the threshold at which workers start to pay National Insurance contributions (NICs) by £12,570 this month – the largest increase in a basic rate threshold. The increase in the threshold means workers can earn an extra £2,690 before having to pay NICs. The change also brings the NIC and income tax … Continued

Comments Off on Treasury’s pensions tax relief bill soars past £42bn

Treasury’s pensions tax relief bill soars past £42bn

Treasury’s pensions tax relief bill soars past £42bn

The costs involved with providing pensions tax relief are predicted to have increased to £42.7 billion in 2020/21, according to HMRC.  Forecasts for the 2020/21 tax year showed another steady annual rise, following estimates of £41.3bn in 2019/20 and £38.2bn in 2018/19. The 2020/21 figure of £42.7bn was split between £22.9bn in income tax and … Continued