As we are approaching the end of yet another tax year, it is worth repeating our suggestion that highlights the cash benefit to company car drivers and their employers, of reimbursing the cost of fuel provided for private motoring. The rates have been updated for 2017-18.   Since the tax on private fuel provided with company cars is so high, many employers have an arrangement whereby they no longer

  In the past, the directors of larger organisations have been able to avoid personal responsibility for the tax evasion acts of their employees and other associates if they can plead ignorance of the act. This “turning a blind eye” excuse has irritated legislators and as a result we now have the Criminal Finances Act 2017 (CFA).   From 30 September 2017, the new CFA ensures that companies and partnerships

  The £5,000 dividend and savings allowance of up to £1,000 have been with us since 6 April 2016. There are now two further allowances available since 6 April 2017. There are concerns that these have not been widely publicised and not properly understood.   The first £1,000 allowance is against self-employed income. This is a deduction from gross income so will only be of benefit to those with a

  In his first Budget on 8th March, the new Chancellor Phillip Hammond announced that he would level the playing field between employees and the self-employed by increasing Class 4 National Insurance Contributions (NICs) from 9% to 10% from 6 April 2018 and then to 11% from 6 April 2019. His justification is that the self-employed are now entitled to more generous State Benefits than in the past, and thus

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May 2017

Class 4 NICs

  The Chancellor announced two increases in Class 4 NI contributions for the self-employed in his budget and in the following week withdrew the increases for the term of the current parliament.   His original notion was to start the process of equalising the NI contributions made by the employed and self-employed now that State Benefits, particularly the new flat-rate State Pension, are available to both groups.   The first

  Many owners of VWs will be peeved that they may have been misled if the recent revelations regarding published CO2 levels are confirmed: they will be driving cars that are not as environmentally friendly as they were led to believe.   VW have admitted that as many as 1.2m of its vehicles sold in the UK have been fitted with software that cheated emissions tests.   It is likely

  Pensions’ automatic enrolment is not going to go away. Businesses have begun to receive notification of their staging date: the date on which pension arrangement under the scheme should be in place.   According to the Pensions Regulator’s commentary on automatic enrolment:   “The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including putting those who meet certain

  If you pay your employees a mileage rate for the business use of their personal vehicles, as long as you do not exceed the approved rates per mile, there is no necessity to report these payments to HMRC and the payment will not be treated as a taxable benefit. Employers and employees may also find the notes that follow instructive:   The maximum tax free rates per mile for

  Did you know that if you take on domestic help you may be considered an employer?   Anyone who works in a private home is treated as an employee if they only work for one family, except for au pairs. This includes nannies, housekeepers, gardeners and anyone else working for one family. You’re their employer if you hire them.   As an employer you would need to ensure that

  The Government has indicated that it wants to offer more to existing pensioners and people who reach State Pension age before 6 April 2016 when the single-tier pension is introduced.   To achieve this a new Class 3A voluntary contribution will be available from October 2015 to April 2017.   The Class 3A contribution will allow people to top up their additional State Pension. The rate of contribution, which