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National Minimum Wage

May 7, 2024

Staying Compliant: Understanding the National Minimum Wage Increases for 2024 With changes to the National Minimum Wage (NMW) and National Living Wage (NLW) rates set for April 2024, businesses must prepare to adjust their payroll processes accordingly. Merranti Accounting is here to guide you through these updates, ensuring compliance and strategic payroll management. The 2024

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The tax consequences of buying a double cab pickup

March 6, 2024

How a double cab pickup is taxed The quick answer is that as long as the vehicle can be classified as primarily a goods vehicle, it can be beneficial to be owned by the limited company. If it is classified as a car it generally is not beneficial and should be purchased privately instead. The magic

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mortgage interest

PPR relief: Demolished and rebuilt dwellings

February 16, 2024

PPR relief: Demolished and rebuilt dwellings Principal private residence (PPR) relief (broadly) applies to gains accruing to individuals on the disposal of (or of an interest in) all or part of a dwelling house that has (or has at any time during their period of ownership) been their only or main residence. No part of

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More changes for unincorporated businesses

February 16, 2024

More changes for unincorporated businesses Unincorporated businesses are going through their biggest tax change for a generation, with the switch to a tax year basis of assessment for profits, rather than the ‘basis period’ system. Further change is on the way. For the last ten years, smaller businesses have had the option of preparing their

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Child Benefit tax charges

February 16, 2024

Child Benefit tax charges The High-Income Child Benefit Charge (HICBC) was introduced in January 2013. The rules can be quite complex, but it essentially starts to claw back Child Benefit (which remains a tax-free payment) by levying a tax charge on the higher income person of a ‘family unit’. If that person has relevant income

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National Minimum Wage (NMW) rises

February 16, 2024

National Minimum Wage (NMW) rises The rates of NMW and National Living Wage (NLW) are once again set to rise significantly. The rates that will apply from 1 April 2024 are as follows:   Note that the NLW will apply from the age of 21, rather than from 23 as it currently does. Employers often

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A look into the tax crystal ball

February 16, 2024

A look into the tax crystal ball With a General Election due by January 2025 at the latest, we may have three major ‘fiscal events’ this year: The Budget on 6 March, an early Autumn Statement (possibly in September) and (assuming the Election is in the autumn) a post-Election Budget in November or December. What

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Cash Equivalent

Determining Taxable Values: The “Cash Equivalent”

February 9, 2024

Determining Taxable Values: The “Cash Equivalent” The computation of taxable values for employee benefits, often referred to as the “cash equivalent,” is a crucial element in payroll and tax considerations. This figure is intricately linked to the cost incurred by the employer in providing a specific benefit. For instance, if an employer spends £1,000 annually

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payroll

Benefits-in-kind

January 26, 2024

Benefits-in-kind In some cases, an employee can avoid being taxed on a benefit if they ‘make good’ the value of the benefit by reimbursing their employer. There are strict time limits for doing this. All reimbursements of taxable non-payrolled benefits for 2023/24 must be made by 6 July 2024. Which aligns with the date for

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Gift Aid

January 26, 2024

Gift Aid This is a valuable relief for gifts to charities: the gift is made out of the donor’s taxed income and the charity benefits by claiming basic rate tax on the value of the gift. • Higher rate taxpayers can claim extra tax relief of 20% of the gross value of the gift. •

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