HM Revenue and Customs (HMRC) reported that thousands of students have been targeted by hackers, who have tried to obtain their financial details. Continue reading
Wow, is it that time of year already? As the holiday season fast approaches, businesses up and down the country will be spreading the joy by treating their employees to a night full of festivities. Continue reading
According to the latest figures from the Office for National Statistics (ONS), wages rose at the fastest pace in nearly a decade in the three months to September. Continue reading
New official research suggests that small and medium-sized enterprises (SMEs) are more likely to encounter a cyber attack or data breach than larger firms and corporates. Continue reading
In a world where everything is done online such as banking, paying bills and shopping, it makes sense for HM Revenue and Customs (HMRC) to bring tax affairs fully into the 21st century. Continue reading
The tax rules for second-homes are to be reviewed by the Government after a “loophole” was discovered which could be costing local councils millions of pounds each year. Continue reading
Hundreds of thousands of taxpayers could be affected by potential reforms of the financial arrangements that allow them to pass on their wealth. Continue reading
HM Revenue & Customs (HMRC) is owed a record £3 billion in outstanding VAT payments by UK businesses, it has emerged. Continue reading
Since the autumn Budget, it is estimated that there are now one million people who will effectively face a 60 per cent tax rate on their income.
The current flaws in the tax system mean that if you are a mum or dad earning an income of £50,000 plus and then receive a pay rise, you won’t see much of it come through in your pay packet.
Following the recent Budget the starting point for the 40 per cent higher-rate tax has increased for high earners from £46,350 to £50,000. This translates into a £860 cut in income tax, mitigated somewhat by higher national insurance contributions, meaning the real gain is actually only around £520 a year.
Mothers and fathers in the UK that are a parent earning over £50,000 could face a tax charge of one per cent of your child benefit for every £100 earned between £50,000 and £60,000.
If you have two children, then the total value of your child benefit is £1,790 a year. For every £1,000 you earn over the £50,000 threshold, you pay tax at 40 per cent or £400, plus you lose 10 per cent of your child benefit, £179. That is £579 in total or an effective tax rate of 57.9 per cent.
As a result of the Budget changes, a parent on £49,999 will pay a maximum 20 per cent income tax, but their marginal rate effectively jumps to 57.9 per cent when they pass over the £50,000 mark.
HM Revenue and Customs’ figures show that 3.3 per cent of employees in England currently earn £100,000 or more.
When an individual is earning over £100,000 of income, they start to lose their personal allowance by £1 for every £2 of income they earn over this threshold.
This works out at an effective rate of tax of 60 per cent. The increase in the personal allowance means the 60 per cent rate of tax remains in effect for longer than before, between £100,000 and £125,000.
However, there is a viable solution to combat the high tax rate. The Chancellor, unexpectedly, left tax relief on pension contributions alone, meaning high earners could make a substantial contribution to their pension pot and bring themselves back under the £100,000 mark.
High Income Child Benefit Charge penalty cases will be reviewed and refunds issued if it is found that the customer had a reasonable excuse for not meeting their tax obligation, HM Revenue & Customs (HMRC) has announced. Continue reading