Employers looking to take on new staff may wish to consider employing two or more part-time workers rather than one full-time worker. This can save them National Insurance. Employers are liable to pay secondary (employer’s) Class 1 National Insurance contributions on an employee’s earnings to the extent that they exceed the relevant secondary threshold. For
NIC Advantages of Part-Time Workers Read More »
The Employment (Allocation of Tips) Act 2023 sets out a new legal framework for the fair allocation of tips. A new Code of Practice is to be introduced and employers will have a legal obligation to adhere to the Code. It will set out the principles of fairness and transparency and will reflect the different
Tax payments for the self-employed or those who declare their income under self-assessment are payable by 31 January and 31 July every year. Taxpayers who cannot pay by those dates have the opportunity to pay via HMRC’s ‘Time to Pay’ scheme whereby HMRC agrees to a payment plan for unpaid tax spread over a longer
A Different Method of Paying Tax Read More »
Class 2 NICs are flat-rate contributions payable by the self-employed, currently charged at a rate of £3.45 a week. Non-payment (or credit) could mean entitlement to the state retirement pension (and other contributory state benefits) will be affected unless the individual is also paying Class 1 NIC because they are employed. The majority of self-employed
Class 2 National Insurance Voluntary Contributions Are No More Read More »
The potential to be charged capital gains tax (CGT) arises with the sale or gift of an asset. Deferral of the charge is possible with reference to business assets using ‘hold-over’ relief, thereby avoiding an immediate CGT charge for the donor. The donee takes over the donor’s CGT base cost, increasing any gain on the
Deferring Capital Gains Tax on A Business Asset Read More »
If you have a spare room in your home, you may consider letting it out to raise some much-needed cash to help meet rising living costs. If you do decide to do this, the rent-a-room scheme means that you may be able to enjoy the associated rental income tax-free. The scheme applies where you let
Enjoy £7,500 of Tax-Free Income Under the Rent-A-Room Scheme Read More »
The main residence exemption applies for capital gains tax purposes to the extent that a property is used as the taxpayer’s only or main residence. Where a property is used partly for business and partly as a residence, the relief only applies to that part which is used as a residence. The gain relating to
Business Use of Home – Beware the Lower CGT Annual Exempt Amount Read More »
As the cost-of-living crisis bites, landlords may find that tenants struggle to pay their rent. Where this is the case, the relief that is available and the way that it is given depends on how the landlord prepares his or her accounts. We explain the rules. Cash Basis The cash basis is the default
Tax Relief for Unpaid Rent Read More »
The personal allowance is set at £12,570 for 2023/24. However, not everyone is able to benefit from the personal allowance. A taper applies which gradually reduces the personal allowance until it is lost. The taper applies when adjusted net income exceeds £100,000. It operates by reducing the personal allowance by £1 for every £2 by
Preserving the Personal Allowance Read More »
Most people do not want to give money to the taxman when they die. However, while it is said that inheritance tax (IHT) is a voluntary tax that can be avoided by giving away money during your lifetime, there is the practical issue that people need money to live on while they are alive. This
Giving Away Money Free of IHT Read More »
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