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New tax bands announced in Scottish Budget

Monday, January 1, 2018

In the Scottish Budget, which took place on 14 December 2017, Scotland’s Financial Secretary, Derek Mackay, announced that two thirds of income taxpayers will pay less next year on their current income. However, new bands of income tax were also announced, which will see taxes rise for Scottish taxpayers in the middle income bracket.

The Draft Budget 2018/19 proposes a progressive income tax policy which protects low earning taxpayers through the introduction of a new Starter Rate of tax.

It was also confirmed that a new intermediate rate of tax of 21%…

Family Firms Likely to be Hit Hard By Dividend Allowance Slash

Monday, December 11, 2017

The dividend allowance cut, that will affect contractors across the country, will go ahead from April 2018, now that the Government’s second Finance Bill has been confirmed.

The tax free dividend allowance will be cut from £5,000 to £2,000 from April 2018, in the Chancellor’s bid to create a level playing field on taxes for employees and contractors. However, the changes could hit family businesses particularly hard, if more than one family member takes a dividend payment.

The dividend allowance cut was mooted in the Chancellor’s Spring Budget speech, with…

Abolition of Class 2 NICs delayed

Tuesday, December 5, 2017

On 2 November 2017, the Government announced a one year delay to the abolition of Class 2 National Insurance Contributions (NICs). Class 2 NICs will now be abolished from 6 April 2019 rather than 6 April 2018.

The delay will allow time for the government to engage with interested parties and Parliamentarians with concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits.

The relevant legislation will be contained in the National Insurance Contributions (NICs) Bill, which will now be introduced in 2018 with…

Childcare scheme extended

Tuesday, December 5, 2017

HMRC have recently confirmed that the second phase of the roll-out of the new 30 hours free childcare has commenced.

Broadly, from September 2017, the new 30 hours free childcare offer for working parents of three and four year olds in England doubled the previous 15 hours of free childcare, saving eligible working families up to £5,000 a year. From 24 November 2017, the service will also be available to parents whose youngest child is under six or who has their sixth birthday on that day.

Eligible parents will be able…

HMRC consult on PAYE reporting requirements

Tuesday, December 5, 2017

HMRC have launched a technical consultation seeking comments on draft legislation which will amend the PAYE requirements (provided for in the PAYE Regulations) for employers in respect of car data reporting and optional remuneration arrangements. If enacted, the changes will apply from 6 April 2018.

Car data reporting requirements

Legislation was introduced at April 2016 that provided for employers to choose to tax most benefits-in-kind (BiKs) through their payroll rather than at the end of the year. These BiKs are reported to HMRC though Real Time Information (RTI), and remove…

Employment status case turned on right of substitution

Tuesday, December 5, 2017

Employment status tax cases often make the headlines in the professional press and the recent case involving Deliveroo riders was no exception. The meal delivery firm won the case in the Central Arbitration Committee (CAC), confirming that its riders are not ‘workers’. This is the latest challenge to the employment status of ‘gig economy’ workers.

In this case, the Independent Workers Union of Great Britain (IWGB) sought to argue that riders were workers, so that they could claim union recognition, thus affording them certain collective rights regarding the minimum…

Autumn Budget 2017

Thursday, November 23, 2017

Making the most of your money and achieving your financial goals in a world of complex and ever-changing tax legislation requires careful planning and expert advice.

This guide introduces some of the key areas to consider when planning to maximise your business and personal wealth, although your exact requirements will depend on your individual circumstances.

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 Read More

Morgan Hemp Acquires City Centre Company

Saturday, November 11, 2017

Morgan Hemp, has expanded its operations by acquiring Owen John & Co, cementing its position as a leading choice of accountants for SMEs.

Morgan Hemp director, Richard Morgan, says: “I’m delighted to see us take on Owen John & Co, a well-respected and long-established company with a similar ethos to our own – offering an approachable, practical, jargon-free service that is particularly valued by SMEs.

“I am pleased to welcome the Owen John & Co team of four to the Morgan Hemp fold, in Walter Road, and we look forward to…

Can We Expect a ‘Steady As She Goes’ Autumn Budget For Stormy Times?

Monday, November 6, 2017

It might be the case, in these vexatious political times, that the Conservatives are hoping for some tasty vote-winning offerings from Philip Hammond’s upcoming Autumn Budget.

But the Chancellor’s style has always been steady and unshowy and there is little to suggest he plans to break that habit with any earth-shaking announcements on 22 November. There are, however, some hot topics that he is unlikely to be able to avoid, around student debt, the housing crisis and, of course, Brexit.

So, there is speculation around whether he may move towards…

HMRC launch new business support service

Wednesday, November 1, 2017

HMRC have launched a new service designed to directly help mid-sized businesses as they expand and grow.

The new Growth Support Service (GSS) will be open to some 170,000 mid-sized businesses registered in the UK who are undergoing significant growth, and who either have a turnover of more than £10 million, or more than 20 employees.

Broadly, a business will be eligible under the ‘significant growth’ criteria if its turnover increased by 20% or more in the last twelve months, where this increase is at least £1 million.

HMRC’s GSS tax experts…