Spring Budget 2024

The Spring Budget 2024 aims to halve inflation, reduce debt and grow the economy.   Here is the summary of the key points in the Budget Statement affecting tax: A reduction in the rate of Class 1 primary (employees) National Insurance contributions (NICs) from 10% to 8% from 6 April 2024. A reduction in the rate of…

Company cars and tax

Company cars remain a popular employee benefit. Some company car drivers also receive free fuel for private use. Both employers and employees need to consider the tax implications of company cars before making decisions. Employers will pay class 1A national insurance contributions (NIC) on the benefit. Employees pay income tax on the benefit but do…

Tax inspections and how to avoid them

‘Anybody running a business needs to be concerned about the possibility of facing a tax inspection,’ says Nicholas Parkes, an ex-tax inspector turned tax information provider. ‘In the Revenue, we always believed you could pick up any file and find something.’ What triggers a tax inspection? According to Parkes, some 7% of tax inspections are…

Corporation tax reliefs and allowances – Useful guide for Ltd companies

Corporation tax reliefs and allowances Corporation tax reliefs and allowances help you to minimise your corporation tax liability. It’s worth understanding the different ways in which the annual investment allowance, other capital allowances and allowable expenses are treated Capital allowances and the annual investment allowance Business expenses can normally be deducted from your income when…

Personal pension vs Company pension contribution

Personal Pension Contributions Individuals working as an employee or self-employed/director can contribute to any number of pension plans. Personal contributions made by an individual are unlimited. However there is a limit on the amount of gross contributions that an individual can pay each year and benefit fully from tax relief. Important – Tax relief is…

Salary or Dividends: Tax calculations for 2021-22 tax year

We explain the basics in deciding between paying yourself salary or awarding dividends from your limited company for the tax year. Your personal circumstances will dictate the exact levels; if your finances are complicated, you should seek professional advice. The following calculations are based on rates and thresholds in England, Wales and Northern Ireland for…