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Due to the high level of inflation in September 2022, the annual increase in both the National Minimum Wage (NMW) & the National Living Wage (NLW) will be somewhat higher than usual. The Chancellor of the Exchequer accepted the recommendation of the Low Pay Commission to increase the current rates by 9.7%.   The NLW…

If you were interested in offering your employees the Cycle to Work Scheme, there are three main methods you could use:   Salary Sacrifice Loan Pooled cycles   Method 1: Salary Sacrifice Under this method, your employee would be agreeing to sacrificing part of their salary before tax and you would provide the hire of…

The Employment (Allocation of Tips) Bill 2022-23, widely expected to become law for the start of the 2023-24 tax year, creates a new legal obligation on employers to ensure all tips, gratuities & service charges they receive, or have control of, must be paid to their employees without deductions. Employers must also ensure that the…

The Construction Industry Scheme (CIS) was first introduced in 1971 (named the Construction Industry Tax Deduction Scheme) in order to combat tax evasion in the construction industry. This is done by contractors deducting money from a subcontractor’s payments and passing it onto HM Revenue and Customs on their behalf. The deductions are then considered as…

  Due to Bank of England increasing interest rates, the Department for Education (DfE), in conjunction with the Student Loans Company, have confirmed changes to interest rates & repayment thresholds.   Plan 1 Type Student Loan (those who started study before 1-Sep-12)   From 1 Sept 22 the interest rate will increase from 1.5% to…

For many years employers have been able to set up a Direct Debit (DD) with HMRC to make a single one-off payment. Recurring DD’s have not been allowed. From early Autumn, HMRC are expecting to launch a new Payments Strategy enabling employers to establish a DD that will recur monthly.   Employers will need their…

Yesterday the Supreme Court rejected Harpur Trust’s appeal with regards to the calculation of holiday pay.   In 2013 Brazel was a part-time music teacher who worked varying hours throughout the year. Her employer was Harpur Trust. When taking her holiday, Harpur Trust calculated her holiday pay based on 12.07% of hours worked. Brazel disagreed…

In 2014 HMRC set up the Employment allowance which was a way of giving back to employers who took on more staff, the way the allowance works is that your employers national insurance liabilities are reduced by the allowance up to £2,000 or by the tax year end which ever was reached first.   Since…

  Introduced in 2017 as a form of taxation designed to help companies offer more in the way of apprentice opportunities. Any company offering approved apprenticeships can tap into the funds raised from a levy exacted against employers with a payroll bill in excess of £3m per annum (£250,000 per month).   However, what a…

With the rising cost of living, it has never been more important to ensure you are paying the correct amount of tax through your PAYE tax code. It is important to understand your tax code, any changes to this and why your tax code on your payslip is what it is. There are many reasons…