Category Archives: Blog

Withholding tips from hospitality staff to become unlawful

Under the Employment (Allocation of Tips) Act 2023 it will be unlawful for  hospitality employers to withhold tips from employees, ensuring that staff receive the tips they have earned.   The new law is expected to come into force in 2024 after a consultation and via secondary legislation. The Government believes that tips, gratuities and service…

Be careful about making deductions from wages

Employers, please be careful about making deductions from wages that reduce the gross amount below the relevant NMW rate. For example, you may deduct sums for employee uniforms, staff meals, childcare vouchers, or even for places at child nurseries where the employee also works. If you provide such benefits this needs to be done outside…

Are you due a national insurance refund on car allowances?

national insurance refund

Recent Tribunal decisions in favour of employing companies and against HMRC has caused many organisations in similar circumstance to make protective claims for the recovery of National Insurance Contributions (NIC) in respect of car allowances paid to employees using their own cars or vans for business journeys.  Many employers have a policy of only reimbursing…

It’s important to have up to date profit forecasts for tax

profit forecasts for tax

In order that we can help predict your taxable profits and tax liabilities we need up to date profit figures and projections. One of the advantages of keeping your business accounts in a computerised form, ideally on the Cloud, is that we can review your latest financial position and help you prepare more reliable profit…

Autumn Statement Date Set for 22nd November

Autumn statement

The Treasury has announced that the Office of Budget Responsibility (OBR) will produce a report on the state of the UK Economy in time for the Chancellor Jeremy Hunt to present his Autumn Statement on Wednesday 22 November. Last year the Chancellor announced a number of significant changes, reversing many of the proposals in the…

HMRC to require more information to be provided by taxpayers

taxpayer information

Draft legislation released for consultation on 18 July indicates that business and individual taxpayers will be required to provide more information to HMRC in the next few years. It is proposed that from 2025/26, employers will be required to provide more detailed information on employee hours worked via real time information (RTI) PAYE reporting. The…

Income tax on inherited pension funds

income tax

Currently, where an individual pension holder dies before age 75, drawdown pensions paid to a successor can generally be received free from income tax. Where the pension holder dies over the age of 75, then the amounts drawn by the successor are taxed at their marginal income tax rate. Note also that the current tax…

Merger of R&D tax relief schemes to go ahead

R&D tax relief scheme merger

The government have issued draft legislation for consultation on the proposal to merge the two forms of corporation tax relief for expenditure on research and development (R&D). For expenditure incurred on or after 1 April 2024, it is proposed that the two schemes providing for R&D relief – R&D expenditure credit (RDEC) and Credit Relief…

Child benefit may create a tax charge for those with high income

Child benefit

Parents and carers need to be aware that if either of the couple have ‘adjusted net income’ in excess of £50,000 then the one with the higher income will potentially be charged to tax on some or all of the child benefit and will need to request a self-assessment tax return to report the amount…