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Paying voluntary NICs

There are various reasons as to why gaps may arise in an individual’s national insurance contributions (NIC) record, for example, because that person has been on low earnings for several years, they have been living abroad, or because they have been unemployed and have not been claiming benefits. In certain circumstances therefore, it may be possible, and beneficial, to pay voluntary Class 3 National Insurance Contributions (NICs) as this can safeguard entitlement to a future state retirement pension and certain other state benefits.

Broadly, voluntary contributions may be paid…

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Workers Rights, The Gig Economy and The Autumn Budget

I suspect that for Philip Hammond, the last budget seems like it happened mere weeks ago. But the thoughts of employers, employees and of all of us concerned with finances and tax are turning to the Autumn Budget 2017.

Budget predictions are proving to be as difficult as predicting election results, so let’s not venture too far down this route.

However, some of the topics that The Chancellor is going to have to address include workers rights and the rights of those working in the ever-growing gig economy.

The issue of…

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Tax & Financial Strategies 2017/18

Recent months have seen significant changes to the UK’s economic and political landscape. With further landmark changes in the pipeline, it is more important than ever to plan ahead and ensure that you are making the most of your business and your personal finances.

 

If you have any questions or would like one-to-one advice tailored to your needs, please call us on 01792 466 428 or email [email protected].

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Savvy Forward-Planning Will Deliver Succession Success

If you have been at the helm of your own business for some years, nurturing it from germination to becoming a fruitful concern, your thoughts will, at some point, turn to passing it on – and enjoying the rewards of your hard work.

Long before you start to dream about a relaxing retirement sampling the verdant golf courses of the world, you have another very important duty to perform in order to safeguard the long-term vitality of your business – and to safeguard your nest-egg.

Exiting a business, whether you…

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New state pension and contracted-out NICs

Most people will be aware that the state retirement pension system has changed for people who reach state pension age on or after 6 April 2016 – that is men born after 5 April 1951 and women born after 5 April 1953. The full new state pension is currently £159.55 per week, but the amount that employees who have previously paid National Insurance contributions (NIC) at the contracted-out rate may be affected under the new system. The introduction of the new state pension from 6 April 2016 brought…

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Rent a room scheme

Although Budget 2017 announced that the Government intends to review the rent-a-room scheme, it currently remains a tax-efficient way of letting out a spare room. Broadly, HMRC’s rent-a-room scheme is an optional exemption scheme, which allows individuals to receive up to £7,500 of tax-free gross income (income before expenses) from renting out spare rooms in their only or main home. The exemption is halved where the income is shared with a partner or someone else. Broadly, as long as income is below the annual threshold, it does not…

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VAT: zero-rating of adapted motor vehicles

Finance Act 2017 introduced legislation designed to end perceived abuse of the VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users.

The amended rules, which took effect from 1 April 2017, now specify a limit on the number of vehicles within a specified period of time that an individual can purchase under this relief.

An eligible individual will be able to purchase one vehicle every three years. There are some instances when this limit can be exceeded, so if an individual’s car is written off or…

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Working from home

Over recent years, it has become increasingly popular for employers to allow their employees to work from home, and in doing so, pay an amount to cover any additional household costs incurred. What are the tax implications of such expenses for the employee?

Broadly, no tax liability will arise where an employer make a payment to an employee for reasonable additional household expenses, which the employee incurs in carrying out duties of the employment at home under ‘homeworking arrangements’.

‘Homeworking arrangements’ are arrangements between the employee and the employer under…

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Best Foot Forward For Admiral Swansea 10k and JCP Swansea Half Marathon

Our payroll manager, David Phillips, is leading a Morgan Hemp team through their paces, in preparation for a duo of challenges this summer to raise money for Golau Cancer Foundation.

David is leading a team of ten Morgan Hemp staff, who are in training as we speak to take on the Admiral Swansea 10k on September 24th, as part of a series of fundraising events to say thank you to Golau Cancer Foundation.

David will also lace up for the JCP Swansea…

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CGT annual exemption: use it or lose it!

Capital gains tax (CGT) is normally paid when an item is either sold or given away. It is usually paid on profits made by selling various types of assets including properties (but generally not a main residence), stocks and shares, paintings, and other works of art, but it may also be payable in certain circumstances when a gift is made.

The most common method for minimising a liability to capital gains tax is to ensure that the annual exemption is fully utilised wherever possible. Whilst this is relatively straight-forward…

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