Form submitted!
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Nearly three-quarters of a million more people are likely to be caught by the 40 per cent income tax bracket from next April.
According to a new survey, more than 742,000 workers will be affected due to the freeze on tax rate thresholds announced in the Autumn Statement.
To make matters worse, rising inflation is wiping out many pay rises and their increased tax bill is likely to leave them worse off as a result, the data shows.
As a result of the decision to freeze the thresholds, new analysis from Investec Wealth & Investment estimates nearly a quarter (23 per cent) of full-time workers will be paying 40 per cent tax from April 2023, compared with 19.6 per cent who currently pay it.
The 45 per cent tax rate threshold is also being cut from £150,000 to £125,140. This will take far more people into the additional rate tax bracket than ever before, while also meaning those already in the bracket will pay the 45p rate on a bigger proportion of their income.
Tax saving options could include:
Top up your pension
As you fund an individual pension yourself, the more you pay in, the more potential there is for you to achieve the retirement you want but, in the meantime, you could get tax relief on additional contributions.
Contribute to your partner’s pension
If your partner is not earning, it is also tax-efficient to contribute to a pension scheme for them.
Charitable contributions
HM Revenue & Customs (HMRC) says donations by individuals to charity or to community amateur sports clubs (CASCs) are tax-free. The tax goes to you or the charity. How this works depends on whether you donate:
· Through Gift Aid
· Deducted from your wages or pension through a Payroll Giving scheme
· Through land, property or shares
· In your will
Transfer your personal allowance to your spouse or civil partner
This can be done simply online through HMRC, saving up to £252 tax annually. This is because the marriage allowance permits a basic rate tax-paying couple to transfer 10 per cent of one of the couple’s personal allowance to the other.
Need advice on personal taxation? Contact us today.
Small business confidence dips ahead of new customs controls coming into force
Four in 10 exporters have reported a fall in international sales since the end of the Brexit transition period, a major study has revealed. According to the tracker, four in 10 – around 41 per cent of traders – have reported a “drop off” in international sales in the three months to September 2021.
Business
HMRC asks sole traders to correctly report SEISS grants or “repay in full”
Sole traders who have not correctly reported their Self Employment Income Support Scheme (SEISS) grants may be forced to repay them in full, it has been warned.
Compliance
Small businesses call for Government support to tackle climate change
According to new research, many are addressing energy usage, increasing recycling and investing in microgeneration, but only a third of those have a formal plan to tackle climate change within their business.
Economy
Almost 800,000 tax scams reported to HMRC in past 12 months, figures reveal
Nearly 800,000 tax-related scams were reported to HM Revenue & Customs (HMRC) in the past 12 months, a major study has revealed. According to the report, HMRC responded to 797,010 referrals of suspicious contact from the public in the last year. Around 358,000 of these involved scams where taxpayers were offered bogus tax rebates.
Tax Planning