Careers Newsletter Signup The DSK TechStack

Month: December 2023

CGT exempt allowance halving from April 2024

Posted on by

The annual exempt amount applicable to Capital Gains Tax (CGT) is to be halved from April 2024. This means that the exempt amount will be reduced from £6,000 currently, to £3,000 from April 2024. The exempt amount was as high as £12,300 2022-23.

Any taxpayers with small gains should consider the benefits of crystalising these gains before 6 April 2024 to fully use the £6,000 allowance for 2023-24. Married couples and civil partners both qualify for the £6,000 allowance, in which case organising joint ownership of these assets before disposal may be beneficial if each individual partner is not fully using their annual allowance. 

Transfers between spouses and civil partners are exempt from CGT. Making use of the full allowance can, in some circumstances, effectively double the CGT exemption before the end of the current tax year, to £12,000.

CGT for individuals is normally charged at 10% or 20%. If taxpayers pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 20% CGT. 

A higher rate of CGT applies to gains on the disposal of residential property (apart from a principal private residence). The rates are 18% for basic rate taxpayers and 28% for higher rate taxpayers.

Source: HM Revenue & Customs Tue, 12 Dec 2023 00:00:00 +0100

Changes to NIC from January 2024

Posted on by

A reminder that the main rate of Class 1 Employee National Insurance contributions (NIC) will be reduced from 6 January 2024. This change will see Class 1 NICs reduced by 2% from 12% to 10% in a change set to benefit some 27 million employees.

This reduction will only apply to annual earnings between £12,570 and £50,270, meaning that the maximum saving is £754 a year. The average worker bringing home £35,400 will be £450 better off. As the Class 1 NIC rate will be reduced from 6 January 2024, employees will see a benefit before the start of the next tax year. Usually, such changes would only take effect from the start of the new tax year.

The policy paper released by HM Treasury on these changes also highlighted further examples of the savings this will create. We have listed these examples below.

  • A senior nurse with 5 years of experience on £42,618 will receive an annual gain of £600.
  • An average full-time nurse on £38,900 will receive an annual gain of over £520.
  • An average police officer on £44,300 will receive an annual gain of over £630.
  • A typical junior doctor on £63,000 will receive an annual gain of over £750.
  • A cleaner working night shifts on £21,000 will receive a gain of £170.
  • A typical self-employed plumber on £34,400 will receive an annual gain of £410.
  • An average teacher on £44,300 will receive an annual gain of over £630.
  • A hard-working family with 2 earners on the average earnings of £35,404 will be £900 better off.
Source: HM Treasury Tue, 12 Dec 2023 00:00:00 +0100

Employees on full-time and part-time contracts

Posted on by

When a new employee is added to the payroll it is the employer's responsibility to ensure they meet the employee's rights and deduct the correct amount of tax from their salary.

HMRC’s guidance lists the following requirements that an employer must meet for employees on full-time and part-time contracts:

  • a written statement of employment or contract;
  • the statutory minimum level of paid holiday;
  • a payslip showing all deductions, such as National Insurance contributions (NICs);
  • the statutory minimum length of rest breaks;
  • Statutory Sick Pay (SSP); and
  • maternity, paternity and adoption pay and leave.

Employers must also:

  • make sure employees do not work longer than the maximum allowed;
  • pay employees at least the minimum wage;
  • have employer’s liability insurance;
  • provide a safe and secure working environment;
  • register with HM Revenue and Customs to deal with payroll, tax and NICs;
  • consider flexible working requests;
  • avoid discrimination in the workplace; and
  • make reasonable adjustments to their business premises if an employee is disabled.
Source: HM Revenue & Customs Tue, 12 Dec 2023 00:00:00 +0100

Rent-a-room relief

Posted on by

The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home. If you are using this scheme, you should ensure that rents received from lodgers during the current tax year do no exceed £7,500. The tax exemption is automatic if you earn less than £7,500 and there are no specific tax reporting requirements. If required, homeowners can opt out of the scheme and record property income and expenses as usual.

To qualify for this relief, homeowners must be resident in the house whilst rooms are sub-let.

The relief applies only to the letting of furnished accommodation and can be used when a bedroom is rented out to a lodger by homeowners in their home. The relief also simplifies the tax and administrative burden for those with rent-a-room income up to £7,500. The limit is reduced by half if the income from letting accommodation in the same property is shared by a joint owner of the property.

The rent-a-room limit includes any amounts received for meals, goods and services provided, such as cleaning or laundry. If gross receipts are more than the limit, taxpayers can choose between paying tax on the actual profit (gross rents minus actual expenses and capital allowances) or the gross receipts (and any balancing charges) minus the allowance – with no deduction for expenses or capital allowances.

Source: HM Revenue & Customs Tue, 12 Dec 2023 00:00:00 +0100

Tax exempt accommodation costs

Posted on by

There are special rules for the provision of living accommodation for employees. In most cases, employees will pay tax on any living accommodation provided by an employer unless they qualify for an exception.

However, where an employee qualifies for an exemption, there is no tax to pay on the provision of living accommodation. The definition of living accommodation includes houses, flats, houseboats, holiday homes and apartments. It does not include hotel rooms or board and lodgings.

An exception for living accommodation will usually apply in the following cases:

  • If it is domestic or personal
    • Accommodation is exempt if both:
      • you are an employer who is an individual, for example a sole trader; and
      • you are providing it for someone because they are a close relative – even if they happen to work in your business.
  • If it is provided by a local council
    • Accommodation is exempt if a local council provides it on the same terms that it provides housing to non-employees.
  • If it is necessary or usually provided for the job
  • If it is needed for security

Other charges and costs

If the accommodation you provide is exempt, you do not have to report Council Tax, water and sewerage charges to HMRC, or pay National Insurance and tax.

Source: HM Revenue & Customs Tue, 12 Dec 2023 00:00:00 +0100

What data do organisations hold about you?

Posted on by

If you are concerned that an organisation is holding personal information you have a legal right to ask for a copy of the information that they hold about you.

If it is a public organisation, write to their Data Protection Officer (DPO). Their details should be on the organisation’s privacy notice.

If the organisation has no DPO, or you do not know who to write to, address your letter to the company secretary.

How long it should take

The organisation must give you a copy of the data they hold about you as soon as possible, and within one month at most.

In certain circumstances, for example particularly complex or multiple requests, the organisation can take a further two months to provide data. In this case, they must tell you:

  • within one month of your request; and
  • why there’s a delay.

When information can be withheld

There are some situations when organisations are allowed to withhold information, for example if the information is about:

  • the prevention, detection or investigation of a crime;
  • national security or the armed forces;
  • the assessment or collection of tax; or
  • judicial or ministerial appointments.

An organisation does not have to say why they are withholding information.

How much it costs

Requests for information are usually free. However, organisations can charge an administrative cost in some circumstances, for example if:

  • you are asking for a large amount of information; or
  • your request will take a lot of time and effort to process.
Source: Other Mon, 11 Dec 2023 00:00:00 +0100

Planning changes to boost solar rollout

Posted on by

Homes and businesses will be able to install rooftop solar panels more easily, under new rules that were recently announced.

Changes to permitted development rights rules will mean more homeowners and businesses will be able to install solar panels on their roofs without going through the planning system. 

Currently those who have to go through the planning system are having to wait over eight weeks and face extra costs.  

The move will encourage more people to install solar panels on their properties, slashing their energy bills in the process and cutting down on harmful emissions.

Energy Security and Net Zero Minister Graham Stuart MP said:

“… we are cutting through red tape to make it easier for businesses to install solar panels on their rooftops.

Removing the 1MW restriction for industrial rooftop solar will help us meet our target of 70GW of solar power by 2035 while supporting hundreds of long-term skilled British jobs, bolstering our world-leading renewables sector and reducing bills for consumers with panels.”

The changes will mean homes with flat roofs will be able to install panels without planning permission, bringing rules in line with those for businesses. 

Current rules that require businesses to apply for planning permission if solar panels will generate more than one megawatt of electricity will also be scrapped, meaning organisations will be able to install more solar panels on rooftops without the delay and cost of applying for planning permission.

The Government is clear that where possible already developed land should be used for solar panels, which is why the changes will make it easier for panels to be installed in canopies above car parks, if they are over ten meters away from people’s homes.  

These measures also support ambitions set out in the British Energy Security Strategy published by government last year – taking the necessary steps to combat climate change and bring greenhouse gas emissions to net zero by 2050.

Source: Other Mon, 11 Dec 2023 00:00:00 +0100

Pensioner Cost of Living Payment

Posted on by

The Cost of Living support package has been designed to help over 8 million households in receipt of mean tested benefits. The details for Cost of Living Payments due in the 2023-24 tax year were published earlier this year and have recently been updated.

Eligible recipients will receive up to three Cost of Living Payments of £301, £300 and £299 during the course of the current tax-year. This includes those receiving pension credit and these payments will be made separately from other benefit payments. The first payment of £301 was made between April-May 2023 and the second payment of £300 was paid during August-September 2023. The third payment of £299 is due to be paid during spring 2024.

An additional one-off payment of £150 or £300 will be paid to pensioners during winter 2023-24. The Winter Fuel Payment is provided by the government to help older people keep warm during winter. The amount a pensioner will receive depends on a number of factors including their age and the age of other people living with them. You can receive a Winter Fuel Payment for winter 2023-24 if you were born before 25 September 1957. HMRC completed writing to eligible recipients, at the end of November, telling them how much to expect as their payment.

Source: Department for Work & Pensions Tue, 05 Dec 2023 00:00:00 +0100

Autumn Finance Bill 2023 published

Posted on by

The government published the Autumn Finance Bill 2023 on 29 November 2023. The Bill is officially known as Finance Bill 2023-24. The Bill contains the legislation for many of the tax measures announced in the recent Autumn Statement.

The Autumn Finance Bill will likely be followed by the main Spring Finance Bill 2024 which will be published after the Spring Budget and will cover any remaining tax measures needed ahead of April 2024.

Some of the many measures included within the Bill are:

  • Making full expensing permanent for expenditure on plant & machinery.
  • Extending the sunset clause for the Enterprise Investment Scheme and the Venture Capital Trust scheme to 6 April 2035. 
  • Reforming the film, TV and video games tax reliefs to refundable expenditure credits.
  • Expanding the ‘cash basis’ – a simplified way for over four million smaller, growing traders to use a simpler method of calculating their profits and pay their income tax.
  • Legislating for more generous support for loss-making R&D intensive SMEs as announced in the spring.
  • Setting the rates of excise duty and certain environmental taxes.

The Bill received its first reading in Parliament on Monday 27 November 2023. It will now follow the normal passage through Parliament.

A separate Bill called the National Insurance Contributions (Reduction in Rates) Bill, was published on 23 November 2023 and will enact the NIC changes for employees and the self-employed as announced in the Autumn Statement. 

Source: HM Treasury Tue, 05 Dec 2023 00:00:00 +0100

More time to file company accounts

Posted on by

The normal filing deadline for filing the accounts of a private limited company is nine months after the company’s financial year end. Known as the accounting reference date. For example, many companies have a year-end date of 31 March and are therefore required to file their accounts by the following 31 December. For public companies, the time limit is 6 months from the year end.

There are automatic late filing penalties if your company accounts are delivered late. The penalties depend on how long has passed from the due date for payment and whether the company is private or public.

It is possible to submit a request for more time to file company accounts. However, you can only apply to extend your accounts deadline if you cannot send your accounts because of an event that’s outside of your control – for example, because of an unexpected illness or if a fire has destroyed company records a few days before your filing deadline. An application must be made before the original filing deadline.

Source: Companies House Tue, 05 Dec 2023 00:00:00 +0100

Explore More

Newsletter SignUp

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

Sign up for the newsletter
Login newsletter


© 2021-2022 DSK. All rights reserved.

Logo

+44 (0)20 3995 7700

D S House
306 High Street
Croydon
CR0 1NG