Aaron Associates newsletter

SPRING BUDGET 2024.

We have summarised the key tax announcements.

PERSONAL TAXES

Tax bands and rates.

For 2024/25. The basic rate of tax is 20%. The band of income taxable at this rate is £37,700 so that the threshold at which the 40% band applies is £50,270 for those who are entitled to the full personal allowance.

Check tax rebate eligibility

Anyone living in a property in council tax bands A to D is eligible for a £150 tax rebate as part of a scheme to help with the cost of living crisis. Around 90% of eligible households have received this by direct debit, but what should you do if you haven’t?

Working from home allowance (£6 per week or £26 per month)

Please note, If you previously claimed tax relief when you worked from home because of coronavirus (COVID-19), you might no longer be eligible.

Who can claim tax relief

You can claim tax relief if you have to work from home, for example because:

• your job requires you to live far away from your office
• your employer does not have an office

Who cannot claim tax relief

New HMRC one-stop online shop provides taxpayers with tax relief information

HMRC has launched a new one-stop online shop designed to provide taxpayers with information on the tax reliefs and financial help available from HMRC.

In a new section of the GOV.UK website, HMRC has listed financial support available to ensure individuals are not missing out. There is guidance on relief for childcare and work-related expenses, as well as information about savings and getting help if you cannot pay your tax bill.

Started in April 2019 with Making Tax Digital (MTD) VAT for businesses with taxable turnover above the VAT threshold. MTD VAT is extended to all businesses from April 2022 and MTD income tax self assessment (MTD ITSA) will start in April 2024.

Coronavirus Job Retention Scheme CJRS – UPDATE

The existing furlough scheme, comes to an end on 31 October. The Winter Economy Plan the government announced will be introducing a new Job Support Scheme from 1 November 2020.

For employers to participate in the scheme:

VAT Flat Rate Scheme.

Changes are being made to the Flat Rate Scheme (FRS) which take effect from 1 April 2017. These changes may mean that the FRS is less attractive to some businesses and this may result in these businesses deciding to no longer operate under the FRS. In some cases where a trader has voluntarily registered for VAT it may be appropriate to deregister from VAT.

The Chancellor delivered his Autumn Statement to Parliament on 23 November 2016 and you will find a summary of the changes which may affect you, as an employer.

Salary Sacrifice

The Chancellor intends to remove the income tax and employer’s Class 1A National Insurance contributions (NICs) advantages from salary sacrifice arrangements. In this context, salary sacrifice includes Benefits in Kind (BiKs) with a cash allowance option and flexible benefit packages with a cash option.