The Office of Tax Simplification made eleven proposals for the government to consider. The more significant were: CGT rates should be more closely aligned with income tax rates, implying the maximum tax rate could rise to 45%. The annual exempt amount, currently £12,300 of gains, should be reduced to a “true de minimis level” of […]

On 8th July 2020, Chancellor has delivered his summer economic plan to help the UK economy recover from the impact of the coronavirus pandemic. Here is a summary of the main points: Job retention bonus’ to encourage firms to retain furloughed staff  A one-off £1000 payment to employers for every furloughed employee retained to […]

Due to the current uncertainty in relation to coronavirus (COVID-19), the UK government has taken to help the SME keep afloat. – a Coronavirus Job Retention Scheme– deferring VAT and Income Tax payments– a Statutory Sick Pay relief package for SMEs– a 12-month business rates holiday for all retail, hospitality and leisure businesses in England– […]

The government has announced a one year delay to controversial changes to the off payroll working rules, due to be enacted next month, amid concerns about their potential impact during the coronavirus pandemic. This is a deferral, not a cancellation. The government remains committed to re-introducing this policy reforms to ensure that people working like […]

Personal Allowance and Income Tax thresholdsThe Personal Allowance for the 2020/21 tax year is not expected to change and will remain at £12,500 – this is tax-free and is applied throughout the UK. National Living WageThe national living wage hourly rate for over-25s will increase by 50p to £8.72. Annual Pension AllowanceThe pension annual allowance […]

The National Minimum Wages (NMW) is the minimum wage per hour a worker is entitled to in the UK. These rates are reviewed yearly and are advised by the independent body, Low Pay Commission (LPC). From April 2019, all workers aged 25 and over are legally entitled to get least £8.21 per hour.  Year 25 […]

Minimum Wage More than two million workers will see their pay jump from April 19, as the National Living Wage jumps to £8.21 an hour. Personal tax The Conservatives’ manifesto pledge to increase personal allowances to £12,500 and the higher rate threshold to £50,000 will be implemented from April 2019, which is one year earlier […]

TRANSITION TO TAX AT SOURCE IN 2018 Currently, French tax residents pay income tax in the year following the year in which the income is received. With effect from 1 January 2018, a new system for collecting income tax will be introduced in France similar to that in the UK (PAYE). Income subject to this […]

Income Tax: personal allowance and basic rate limit for 2017 to 2018 From 6th April 2017 the personal allowance will increases to £11,500 for 2017/18. The basic rate limit will be increased to £33,500 for 2017/18. As a result, the higher rate threshold will be £45,000 in 2017 to 2018. National Living Wages From 1 […]

Dividend allowance reduction In April 2016, the Dividend Tax Credit was replaced with a £5,000 dividend allowance. At the same time the rate of tax on dividends was increased to 7.5% (basic rate), 32.5% (higher rate) and 38.1% (additional rate). With effect from 6 April 2018, the dividend allowance will reduce to £2,000. There are […]