News Updates

Keep up to date with the latest advise and guidelines

Corporation Tax Increases from 1st April 2023

The HMRC have increased Corporation Tax rates with effect from 1st April 2023. How does this affect you?

Bank of England Interest Rate Increase

The Bank of England's decision to increase interest rates again, to the highest level since October 2008, comes as the central bank continues to grapple with inflationary pressures.

The Coronation of King Charles III

Monday 8th May is a national bank holiday in the UK, following the coronation of King Charles III. Below you can find a link from ACAS website with advice for employers with the upcoming bank holiday.

New VAT Penalties from 1st January 2023

HMRC have introduced a new VAT penalty system, which will be applicable to all VAT returns with an accounting period starting on or after 1st January 2023.

PAYE | July 2023

Electronic payment deadline falls on a weekend in July.

In July 2023, the electronic payment deadline of the 22nd falls on a Saturday. To make sure your payment for this month reaches HMRC on time, you need to have funds cleared into HMRC's account on or before 21 July 2023, unless you are able to arrange a Faster Payment.

Bank of England | Interest rates to 15-year high of 5.25%

Interest rates have risen to a 15-year high of 5.25%, with the Bank of England carrying out a hike of 0.25 percentage points.

It is the 14th consecutive rate rise, with the Bank seeking to bring down inflation, but prices have been rising at a slower rate than expected recently, giving cause for optimism that this could be the last increase for a while.

But the high-point of 5.25% reached on the 3rd August 2023 has not been matched since the global financial crisis in March 2008, demonstrating the difficulties faced by the UK economy.

HMRC PAYE Downtime | October

Due to scheduled maintenance, you will be unable to view liabilities or payments using the online service from 8am to 7pm on Sunday 8 October 2023.

Bank of England | Interest rates finally stall after 14 increases

The Bank of England has finally paused its aggressive interest rate hikes.

Following news of yet another drop in inflation to 6.7%, the Bank of England (BoE) voted to maintain the current interest rate at 5.25%, bucking the trend of increasing interest rates that began in late 2021.

Chancellor announces major increase to National Living Wage

On Monday 2 October 2023 the National Minimum Wage will rise to two-thirds of average earnings. This would see the National Living Wage increase to over £11 an hour from April 2024 and would mean the annual earnings of a full-time worker on the National Living Wage will increase by over £1,000 next year.

Are you conducting your right to work checks when employing new staff members?

You should conduct right to work checks on all potential employees. This means you should ask all people you are considering employing to provide you with their (original) documents.

If an employer gets this wrong, they are risking a civil penalty of up to £20,000 and/or a 5-year prison sentence for employing an illegal worker. (Last week the home office have confirmed from April 2024 the civil penalty will rise up to £60,000 per illegal worker and/or a 5-year prison sentence).

Right to work checks must be conducted in relation to all potential employees.

Regardless of nationality and is at least over the age of 16 years old, employers must not discriminate their accent, looks, personality and should be conducted the same way as everyone else.

If you require more information on right to work checks please get in touch or alternatively see below for more information.

HMRC Electronic Payment

Electronic payment deadline falls on a weekend

In October 2023 the electronic payment deadline falls on Sunday 22 October. To make sure your payment for the month reaches HMRC on time, you need to have funds cleared into HMRC’s account by 20 October 2023, unless you are able to arrange a Faster Payment.

It is your responsibility to make sure your payments are made on time and if payment is late, you may be charged a penalty.

Check your bank or building society’s single transaction daily value limits and cut-off times well in advance of making your payment. Make sure you know when to initiate your payment, so it reaches HMRC on time.

National Minimum Wage from 1st April 2024

The National Minimum Wage (NMW) and the National Living Wage (NLW) are integral components of the UK's labor market regulations, established to uphold principles of fairness and economic security for workers.

The NMW serves as a legal safeguard, setting the minimum hourly rate that employers must pay their employees, irrespective of age or industry.

On the other hand, the NLW specifically targets workers aged 23 and over, ensuring they receive a wage deemed adequate for maintaining a decent standard of living.

From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage.

April 01, 2024:

21 and over £11.44
18 to 20 £8.60
Under 18 £6.40
Apprentice £6.40

Together, these measures aim to prevent exploitation, reduce income inequality, and enhance overall well-being by guaranteeing a baseline level of compensation for labor.

By continually assessing and adjusting these rates, policymakers strive to uphold the values of dignity and equity in employment while fostering a sustainable and inclusive economy.

Spring Budget 2024 | Personal Tax and National Insurance

Reduction in employee national insurance from 10% down to 8% from April 2024
Reduction in self-employed Class 4 national insurance contributions from 9% down to 6% from April 2024 on earnings over £12,570
Abolition of self-employed Class 2 national insurance contributions from April 2024, however if your profits are less than £6,725 you can pay voluntary Class 2 contributions to keep your record up to date
Earnings between £6,725 and £12,570 will get Class 2 NI “credits”
Dividend tax free allowance will reduce from £1,000 to only £500 from April 2024

Spring Budget 2024 | Higher Child Benefit Tax

The higher income child benefit is set to be reformed, currently if one person in the household earns between £50,000 - £60,000 they would have to pay back some of their child benefit and lose it all if they earnt more than £60,000. This is a really unfair system as you could have two people in household earning £49,000 each (so £98,000 between them) who could keep all their child benefit, but a household with a single income of £60,000 would lose all of their benefit!
From April 2024 it will still be based on single income levels – however the government is committed to removing this unfairness and moving to a system based on household income by April 2026
From April 2024 the limits will rise to £60,000 - £80,000
Therefore, if you previously stopped claiming the child benefit because you were earning over £60,000 you should re-apply for it from April 2024 if you are below the £80,000 threshold

Spring Budget 2024 | Company Taxes

VAT threshold has been increased from £85,000 to £90,000
VAT de-registration threshold has increased from £83,000 to £88,000
Business rates multiplier for small businesses frozen at 49.9p in the pound
Standard multiplier for larger businesses will increase to 54.6p in the pound
75% relief for eligible Retail, Hospitality and Leisure will be extended to 2024/25 subject to cash cap of £110,000

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