Budget Summary 2014

19 March 2014 Summary of key proposals Setting the scene Duty Personal tax Business and enterprise Tax evasion and tax avoidance Pensions, savings and benefits Homes and infrastructure Energy and the environment Official documents from George Osborne’s 2014 Budget   Summary of key proposals Annual Investment Allowance (AIA) doubled to £500,000 and extended to the end of 2015. Anyone using tax avoidance schemes will have Read more…

New service aims to ease employment dispute burden

The head of the service that will provide free support to help employers and employees resolve employment disputes more quickly has been highlighting the benefits it offers. From 6 April 2014, anyone considering making an employment tribunal claim about a workplace issue – such as an unfair dismissal claim, redundancy payments or issues around equal pay or rights to flexible working – will first need Read more…

HMRC highlights benefits of cash basis accounting

Small businesses are being encouraged to consider using an HM Revenue & Customs’ (HMRC) scheme that allows them to be taxed on money flowing into and out of their business, rather than using full accounting rules. With a new tax year about to start on 6 April, HMRC has highlighted the benefits of the cash basis scheme, which can be used by sole traders and Read more…

£2,000 national insurance saving coming soon

Employers are reminded to make sure they do not miss out on a £2,000 cut in their employment costs from 6 April 2014. The new Employment Allowance will see up to 1.25 million employers – businesses, charities and Community Amateur Sports Clubs – benefit from the annual reduction in their Class 1 secondary national insurance contributions (NICs). More than 90 per cent of those benefiting Read more…

SSP: change on the way for employers

A significant change to statutory sick pay (SSP) is on the way for employers from April 2014. Under the percentage threshold scheme (PTS), employers can recover SSP if the total paid in a tax month is more than 13 per cent of their gross national insurance contributions in the same tax month. But the PTS will be scrapped from 6 April 2014, with funding from Read more…

Brits set to ‘pay taxman £4.7bn more than needed’

New research suggests that UK tax payers are set to waste almost £5 billion this year by paying more tax than necessary. The 2014 TaxAction research, released on 17 February by www.unbiased.co.uk, a website enabling consumers to find professional advisers, reveals that taxpayers are set to pay £100 million more in tax than they did in 2013 by not making the most of tax reliefs Read more…

RTI penalties to be phased in

HM Revenue & Customs (HMRC) has announced there will be a staggered start to the introduction of Real Time Information (RTI) penalties. Automatic in-year Pay As You Earn (PAYE) penalties for late filing and late payment and in-year interest – charged on tax and national insurance contributions paid late during the year – were due to start from 6 April 2014. But HMRC said on Read more…

NMW set to rise by 19p an hour

The Low Pay Commission has recommended that the national minimum wage (NMW) should increase to £6.50 an hour from 1 October this year. The increase from the current rate of £6.31 represents a three per cent rise. The commission is also recommending an increase in the rate for under-18s from £3.72 to £3.79 and for 18 to 20-year-olds from £5.03 to £5.13. Announcing the recommendation Read more…

Employers risk tougher health and safety penalties

Employers who breach serious health and safety laws are risking tougher penalties, including prison sentences, according to a new report. The report, published on 16 January, looked at the impact of the first five years of the Health and Safety Offences Act, which was passed in 2008 and took effect on January 16 2009. It found that changes introduced under the Act had led to Read more…

RTI updates issued

HM Revenue & Customs (HMRC) has issued updated guidance for employers on the Real Time Information (RTI) reporting of PAYE information. HMRC said on 16 January that the updates were designed to help employers prepare for changes they would see on payroll submissions from April 2014 and new entries they would need to make on payroll records. The updates include: a late reporting reason that Read more…