PK accounting service Ltd

01/01/2025

31/10/2024

•Inheritance tax

–The IHT threshold of £325k to remain until 2030.

–From April 2027, inherited pensions are subject to IHT.

–From April 2026, agricultural property relief and business property relief will be reformed, with the highest rate of relief remaining at 100% for the first £1m of combined business and agricultural assets on top of the existing nil-rate bands. The rate of relief will reduce to 50% after the first £1m.

–Offshore trusts will no longer be able to shelter assets from IHT, and there will be transitional arrangements for people who have made plans based on current rules.

•Capital gains tax

–CGT rates will increase from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher rate taxpayers, matching existing rates for property which stay the same. Rates on chargeable gains from selling additional property remain unchanged at 18% and 24%, respectively.

–Business asset disposal relief will remain at 10%, before rising to 14% on 6 April 2025, and 18% from 6 April 2026.

–The tax treatment of carried interest will be reformed by increasing CGT rates on carried interest to 32% and then, from April 2026, moving to a revised regime.

•Stamp duty land tax

–The higher rate for additional dwellings surcharge of SDLT in England and Northern Ireland will rise from 3% to 5%, from 31 October 2024.

•Value added tax

–The standard rate of VAT will remain at 20%.

–VAT at the standard rate will be added to private school fees and boarding services from 1 January 2025.

•Income tax and National Insurance

–The income tax and NIC thresholds in England and Wales will remain frozen until the end of 2027–28, when they will begin to rise in line with inflation.

–Rates of income tax and NICs paid by employees will remain unchanged.

–Employers’ NICs will rise from 13.8% to 15% on a worker's earnings above £175 from April 2025, and the threshold at which employers start paying the tax on each employee’s salary will be reduced from £9,100 a year to £5k.

–The employment allowance will increase from £5k to £10,500.

•Business rates

–The current 75% discount to business rates will expire in April 2025 and will be replaced by a discount of 40%, up to a maximum of £110k.

–Private schools in England will lose business rates charitable rate relief from April 2025.

•Corporation tax

–The main rate of corporation tax paid by businesses on taxable profits over £250k will stay at 25% until the next election.

•Excise duties

–Fuel duty will remain the same for one year and the temporary 5p cut will be extended to 22 March 2026.

–Vehicle excise duty first year rates will change from 2025–26, but rates for zero emission cars will remain at £10 until 2029-30, while rates for hybrid and petrol/diesel cars will rise from 1 April 2025.

–The Government will uprate alcohol duty in line with RPI, except for most drinks in pubs, for which the duty on qualifying draught products will be reduced.

–From 2026-27, air passenger duty (APD) rates for short and long-haul flights will be adjusted, such that, for economy passengers, there will be an increase of £1 for domestic flights, £2 for short haul, and £12 for long-haul flights, with children under the age of 16 remaining exempt from APD. APD for larger private jets will be increased by 50%.

–The to***co duty escalator will be renewed, which increases all to***co duty rates by RPI+2%, plus an above escalator increase to hand rolling to***co (totalling RPI+12%).

–A new va**ng duty will be introduced at a flat rate of 22p/ml from October 2026, along with a further one-off increase in to***co duty.

–The soft drinks industry levy will increase over the next five years and will rise in line with inflation every year going forward.

•Non-dom regime

–A new residence-based regime will replace the current non-dom regime from April 2025, but the planned 50% reduction for foreign income in the first year of the new regime will be removed

06/03/2024

Budget highlights: VAT threshold, HICBC relief, NI cuts, 4% cut in CGT for landlords, Non-doms

1.The Chancellor will increase the high income child benefit charge threshold from £50,000 to £60,000 from April 2024.

2. small business and sole traders, the Chancellor has increased the current £85,000 VAT threshold to £90,000

3. national insurance for self employed to 6% from April 2024

4. HMRC will cut employee national insurance by 2p to 8% from the new tax year

5. Chancellor cut capital gains tax on sales of second homes and additional residential properties to 24%.This will see a reduction in the current higher CGT rate from 28% to 24% from April 2024.

6. Short term and long term furnished holiday lettings will be treated the same as long term landlords for tax purposes from next year.

7. Short term and long term furnished holiday lettings will be treated the same as long term landlords for tax purposes from next year.

8. The Chancellor plans to abolish the non-dom regime from 2025, replacing it with a residency based system.The government is abolishing the current outdated tax regime for non-UK domiciled individuals and replacing it with a modernised residence-based regime that is ‘simpler, fairer and more competitive’.

22/11/2023

Key Announcements

1.Class 1 employees NI cut by 2% from January
2.Class 2 NI abolished for the self-employed and 3.Class 4 NI cut by 1% from April
4.National living wage to increase by 9.8% to £11.44 an hour
5.Capital Allowances full expensing made permanent
6.R&D tax credits schemes merged from April, lowering the rate for loss-making businesses in the merged scheme to 19%, and reducing the intensity threshold for loss making SMEs to 30%
7.Extending Investment Zones and Freeports incentives
8.Pensions triple lock – basic state pension increasing by 8.5% to £221.20 a week
9.75% discount on business rates for retail, hospitality and leisure companies
Small businesses rates multiplier frozen for a year
10.Universal Credit and other benefits to increase by 6.7% from April
11.Alcohol duty frozen until 1 August 2024, but not to***co duty.

22/11/2023

Key Announcements.

1.Class 1 employees NI cut by 2% from January
2.Class 2 NI abolished for the self-employed and Class 4 NI cut by 1% from April
3.National living wage to increase by 9.8% to £11.44 an hour
4.Capital Allowances full expensing made permanent
5.R&D tax credits schemes merged from April, lowering the rate for loss-making businesses in the merged scheme to 19%, and reducing the intensity threshold for loss making SMEs to 30%
6.Extending Investment Zones and Freeports incentives
7.Pensions triple lock – basic state pension increasing by 8.5% to £221.20 a week
8.75% discount on business rates for retail, hospitality and leisure companies
9.Small businesses rates multiplier frozen for a year
10.Universal Credit and other benefits to increase by 6.7% from April
11.Alcohol duty frozen until 1 August 2024, but not to***co duty.

26/05/2023

Self assessment threshold rises to £150k

HMRC has confirmed that from tax year 2023 to 2024 onwards, the self assessment threshold for taxpayers taxed through PAYE only, will change from £100,000 to £150,000
Affected taxpayers do not need to do anything now as the self assessment threshold for 2022 to 2023 tax returns remains at £100,000. 

They will receive a self assessment exit letter if they submit a 2022-23 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a self assessment return.

26/05/2023

Self assessment threshold rises to £150k

HMRC has confirmed that from tax year 2023 to 2024 onwards, the self assessment threshold for taxpayers taxed through PAYE only, will change from £100,000 to £150,000
Affected taxpayers do not need to do anything now as the self assessment threshold for 2022 to 2023 tax returns remains at £100,000.

They will receive a self assessment exit letter if they submit a 2022-23 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a self assessment return.

22/05/2023

Landlord registration plan will drive HMRC investigations

The launch of a landlord database outlined in the Renters Reform Bill will give HMRC unparalleled access to information to launch tax investigations.

The database could ‘provide HMRC with a gold mine of information with which to pursue landlords for unpaid tax’, warned BDO.

The Renters (Reform) Bill introduced into Parliament this week, proposes a private rented sector database with details of landlords and their properties let under residential tenancies.

HMRC already holds significant information on taxpayers’ financial affairs. The introduction of a new private rented sector database will leave few places to hide for landlords who don’t comply.

‘Any landlords who don’t currently pay the right amount of tax would be well advised to bring their UK tax affairs up to date before the register is introduced.

27/02/2023

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Please contact 07501069304 or [email protected]

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17/12/2022

The tax return deadline is fast approaching.
All self-assessment tax returns for 2021/22 need to be submitted by 31st January 2023.
Don’t worry though, there’s still time for us to help you. Don't delay, contact us today.
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17/11/2022

1.45% tax will start at £125k

2.the dividend tax allowance will be halved to £1,000 from the current £2,000 with a further cut to follow

3.The tax free allowance for capital gains tax (CGT) will reduce in 2023-24 from £12,300 to £6,000 and again to £3,000 in 2024-25

4.basic income tax thresholds frozen. This means that the threshold for 20% base rate taxpayers will remain at £12,570 while higher rate 40% taxpayers will start paying at £50,270, frozen for two years longer than originally planned.

5.employer NIC threshold frozen. The National Insurance secondary threshold will remain at £9,100 until April 2028.

6.electric vehicles will be taxed .The government plans to tax electric vehicles from April 2025 to equalise the road vehicle excise duty with petrol and diesel vehicles

7.R&D relief restricted for SMEs. For expenditure on or after 1 April 2023, the research and development expenditure credit (RDEC) rate will increase from 13% to 20%, the small and medium-sized enterprises (SME) additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%.

8.minimum wage raised to £10.42.

9.diverted profits tax increases to 31%. From April 2023, the rate of diverted profits tax will increase from 25% to 31%, in order to retain a 6% points differential above the main rate of corporation tax, and therefore ensure that it remains an effective deterrent against diverting profits out of the UK.