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The National Living Wage (NLW) came into effect in April 2016 for workers aged 25 and over and has caused many businesses to consider their remuneration policies for employees. The initial rate of £7.20 is a 50p increase in the rate that used to apply. In terms of detailed rules, the NLW is really just a new category rate for the National Minimum Wage (NMW).
However there is an important difference of principle in the setting of the rates. Changes to the NMW rates have been recommended by the Low Pay Commission in an annual report. Amongst the 368 pages of the latest report are the recommendations for changes to the NMW rates to apply from 1 October 2016. The rate for 21 to 24-year-olds will increase by 25p to £6.95 for example. The Commission will continue to recommend rates for those aged under 25 and apprentices that will not damage the employment prospects of these groups. It will also recommend rates for NLW but focused on the government target of reaching 60% of median earnings by 2020 (on latest forecasts this would mean £9 in 2020).
The government has announced that the NMW and NLW cycles will be aligned with effect from April 2017 so that both rates are amended in April each year.
Those who reached State Pension age on or after 6 April 2016 have the privilege of being the first recipients of the new, supposedly 'flat rate' State Pension. Although the headline flat rate has been set at £155.65 per week nearly everyone is receiving a different amount to this.
The use of social media in businesses has rocketed over the last few years as it is a great way to communicate with a wide audience. If you're not an active user you could be missing out on vital chances to communicate with your clients.
Research and Development (R&D) tax relief can provide additional tax deductions and enhanced cash flow for companies. HMRC have introduced 'Advance Assurance' which enables small companies to confirm their entitlement to R&D tax relief.
Perhaps the most significant announcement in the recent Budget was the news of the Lifetime ISA. A few commentators are suggesting that many taxpayers in their 20s and 30s will ditch saving into a pension scheme and will view the Lifetime ISA as the better way to save for their retirement.
Peter Davies, Managing Partner, concluded his two year fixed term as Chair of the World Board and has handed over to Tim Davidson from Australia. Peter has been re-elected to the European, Middle East and Africa Board as well as the World Board for a further two years.
With pension auto enrolment applying to more and more employers, we look at the options for using a salary sacrifice scheme to deliver tax savings for the employer and the employee.
The Office of Tax Simplification (OTS) started its life in 2010 and has a remit of attempting to simplify the tax system.
The Gift Aid scheme is now 25 years old. In its first year charities benefitted with £10 million of tax savings. In 2014/15 the savings were worth nearly £1.2 billion.
This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.
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HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants.
Up to eight more nuclear reactors could be delivered to existing sites as part of the UK's new energy strategy.
The Treasury has announced that it plans to recognise stablecoins as a valid form of payment as part of a wider government initiative to 'make Britain a global hub for cryptoasset technology and investment'.