newsletter

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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Will you get a full state pension?

January 26, 2024

Will you get a full state pension? If you are looking forward to retirement, it’s a good idea to check out how much state pension you will get. You can do this by logging on to your personal tax account on gov.uk. Which contains lots of useful information about how much tax you owe and

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Capital Gains Tax

January 26, 2024

Capital Gains Tax The annual exempt amount (AEA) is £6,000 for 2023/24, but is reducing to £3,000 in 2024/25. Gains above this level are taxed as follows: • 10% if the gains qualify for Business Asset Disposal Relief (BADR), up to a lifetime limit of £1 million of qualifying gains; • 10% if the gains

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Capital expenditure

January 26, 2024

Capital allowances can be claimed on expenditure on certain types of assets used in your business. You must be careful to distinguish between •‘plant and machinery’ (P&M), which includes many fixtures and fittings (such as desks or chairs for an office); and • structures and buildings. The latter attract much slower tax relief. The rules

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Abolition of the pensions Lifetime Allowance (LTA)

January 26, 2024

Abolition of the pensions Lifetime Allowance (LTA) The LTA has, in recent years, been frozen at £1,073,100. It puts a cap on the amount of tax-advantaged pension rights that you can build up. The value of all your pension funds was compared with this limit at certain ‘benefit crystallisation events’, such as when you first

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state pension fund

Private pensions

January 26, 2024

Private pensions Contributions within the annual allowance (AA) to pension funds attract relief at your marginal rate of tax. The combination of tax relief on contributions, tax-free growth within the fund and the ability to take a tax free lump sum on retirement makes a pension plan an attractive savings vehicle. Saving for retirement should

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Property owners Letting property

January 26, 2024

Property owners- Letting property   Profits from a rental business are subject to income tax at your marginal rate of tax. • Expenses incurred wholly and exclusively in connection with the rental business are deductible when calculating net taxable profits. Provided they are not capital in nature. • However, there is a restriction on deductions

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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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Income Tax information

January 26, 2024

Tax thresholds Currently, income tax rates and thresholds (except in Scotland) are set to remain unchanged for 2024/25. The Personal Allowance (PA), below which income is not taxed, is £12,570. The higher rate threshold at which 40%tax kicks in is £50,270 and top rate tax (45%) begins when income exceeds £125,140. Scotland has different tax

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Self-assessment key dates

January 26, 2024

Failure to notify chargeability to tax, to file your self-assessment tax return or pay any tax due on time may result in penalties. Key dates to be aware of over the next year are outlined below. Note how penalties increase with the lateness of the return. 31 January 2024 Deadline for filing 2022/23 online returns

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