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  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…

In April 2022 we saw Employee’s National Insurance Contributions increase by 1.25% from 12% to 13.25%, as part of the Governments Health and Social Care levy. Employer’s National insurance also increased from 13.8% to 15%. From April 2023, the health and social care levy will be paid separately to National Insurance and become a tax…

We are seeing more and more cases of individuals missing out on claiming higher rate tax relief on their employee pension contributions especially where they are not in self-assessment and required to file tax returns.   Where employers have enrolled their staff to make employees pension contributions via a ‘relief at source’ scheme, the contributions…

HMRC Changes to the National Insurance contributions for 2022-2023 tax year, are you confused? Due to the COVID-19 strain on the NHS, the government announced that they would be increasing the National Insurance contributions by 1.25% as a means to increase spending on health and social care. The Health and Social Care Levy was applied…

During the first lockdown HMRC paused most debt collection activities, which has contributed to the total UK tax debt of £39bn according to The Public Accounts Committee. HMRC have stated, “We are recouping debt safely, taking into account customers’ circumstances and making repayments affordable. It’s in no-one’s interests to push viable businesses into insolvency when…