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When your total income reaches certain levels, it tips any extra income into a higher tax band. This can also mean you lose part or all of your personal savings allowance (PSA), personal allowance (PA) or pensions annual allowance. Although the rates of income tax ...

All interest you receive is taxable, unless it is from an ISA, but banks and building societies don’t deduct tax from interest paid to individuals. For most taxpayers the rate of tax payable on that interest is 0%, so no tax is in fact due ...

If employers pay less than the Approved Mileage Allowance Payments and pay a car allowance​, their employees ​(and the employer) are entitled to national insurance relief on the allowance following a 12-year-long campaign.  Where an employer pays less than the Approved Mileage Allowance Payments (AMAP), the employee ...

There are various tax exemptions you can use to provide an employee with a one-off tax-free reward, such as certain ‘trivial’ benefits or long-service awards. If the value of the reward exceeds the tax-free amount permitted, you can bear the tax and NICs (which the ...

HMRC has made it clear that employers must submit their reports of benefits and expenses provided to employees (P11D forms) in electronic form this year. All paper P11Ds will be rejected, as will any paper amendments to P11Ds for earlier years. There are now only ...

The HMRC computer can be confused by incorrect information in PAYE returns, which may then result in a demand for more tax than you have deducted from your employees. This may happen when the HMRC computer records a duplicate employment for an employee, without ceasing ...

When you are acquiring a commercial building, you need to know whether the purchase price will include VAT. Older non-residential buildings will normally be exempt from VAT, but not if the owner has opted to apply VAT (“opted to tax”) at some point. Once this ...

The annual allowance (AA) caps the amount of tax-relievable pension inputs that can be made to a registered pension scheme. For money purchase (defined contribution) schemes (which include all personal pensions), the inputs are the total amounts contributed by you and your employer. In a ...

HMRC is nudging taxpayers to find answers to their questions on gov.uk rather than calling their helplines. It has already closed the VAT registration helpline, as the vast majority of calls to that line were chasing VAT registration applications, which now take at least 40 ...

To ensure that your PAYE payments get to the right place within HMRC’s systems, you must quote the correct reference when making the payment. This is made up of your 13-character PAYE reference number (HMRC call this your Accounts Office reference), plus 4 digits to ...

After the multiple fiscal statements in 2022, which often reversed changes that had only recently been announced, the last few months have been relatively tranquil on the tax front. The Budget contained high-profile announcements of changes to childcare and pensions, but the former only begin ...

Now that all VAT registered traders must submit their VAT returns using MTD compatible software (unless they have been granted an exemption), HMRC has introduced a new penalty regime to punish late filing. For VAT periods beginning on or after 1 January 2023, a point ...