Tel: 01495 302 382

24 James Street, Ebbw Vale. NP23 6JG

Association of Chartered Certified Accountants

New Dividend Tax April 2016

Posted on by Steve

The changes to dividend taxation announced in the July budget impact significantly on the decision about incorporation. Following the changes made in December 2014 affecting goodwill on incorporation, this change makes it even less attractive for some clients to run their business through a limited company. From April 2016 there will be a dividend Tax allowance of £5000, but after this dividends will be liable to Tax at 7.5% in the basic rate band, 32.5% in the higher rate band and 38.1% in the additional rate band.

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RTI Penalties

Posted on by Steve

Employers with less than 50 employees will now receive penalties if their real time information submissions are submitted late from the 6th March 2015. It is important therefore that submissions are made on or before each payday to avoid these penalties. If you need advice about this matter please contact us at the office.

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Auto Enrolment

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This has been publicised on television and in the press. Most employers should now obtain their staging date. This can be done by visting and entering your PAYE reference number. You will then be able to access your staging date and be able to produce a plan of important dates affecting your business. If you need your PAYE reference number please phone us at the office.

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Real Time Information (RTI)

Posted on by Steve

From the 6th April 2013 employers will have to start reporting PAYE information to HMRC in real time. This is referred to as Real Time Information or RTI.

This means that employers (or their accountant, bookkeeper or payroll bureau) will have to send a submission to HMRC electronically following every pay day. All employees have to be included on the submission including employees who are below the PAYE thresholds.

Penalties will eventually be levied for late submissions.

If you business has a PAYE scheme in operation and has fewer than 9 employees than you are able to use free software e.g. HMRC basic PAYE tools.

Any further information you need on this matter please contact any member of staff at our office.

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Posted on by Steve

PPI payouts are usually formed from 3 elements.

The first 2 elements constitute the compensation. They are a refund of the premiums paid as well as the interest paid on the premiums. These 2 elements are non taxable.

The third element is additional interest on the compensation at 8%. It is this element that is taxable.

Tax is due for the Income Tax year in which the compensation payment is made.

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Increase in Minimum hourly rates from 1st October 2011

Posted on by Steve

The National Minimum rates are reviewed each year by the Low Pay Commission and from October 2011:
(1) The main rate for workers aged 21 and over will increase to £6.08,
(2) The 18-20 rate will increase to £4.98,
(3) The 16-17 rate for workers above school leaving age but under 18 will increase to £3.68,
(4) The apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60.

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Boost your state Pension

Posted on by Steve

About 70,000 people, mainly women, have a two month window in which to boost their sate pension.

Those who reached retirement age, or do so between April 2008 and April this year and who do not qualify for the full state pension, have been given the chance to buy back an additional 6 years of Nics, going back as far as 1975.

This offer ends on April 5. After this, you can still buy back Nics if your state pension age falls between April 6, 2008 and April 5, 2015, but the payments will not be backdated.

You must have at least 20 years of Nics on your record already to qualify. For each year you buy back, the Department for Work and Pensions (DWP) said you could increase your basic state pension by up to 5% a week. You will get the increased state pension for the rest of your life and, if you pay by April 5, could get the increase backdated to when you reached state pension age.

Buying back a full year of voluntary Nics would cost about £625. Suppose a women born in May 1948 and turned 60 in May 2008. She worked part time on and off throughout her life and currently has a reduced basic state pension of £82.03 a week, compared with the full basic state pension of £97.65.

If she paid over £2500 for 4 years additional Nics her basic state pension would increase to the full rate for the rest of her life. That is an extra £15.62 a week at current rates.

The DWP said that if she made this payment by April 5, she would also get back arrears backdated to May 2008, which would amount to more than £2000. She would also get an extra £812 a year state pension for the rest of her life at today’s rates – or a total of £13,804 assuming she lived until 80.

You can get more information at and you can call 0845 604 2931 to buy additional Nics.

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5m to be hit by new tax blunder

Posted on by Steve

Millions of families and pensioners are facing shocking new tax demands as files up to six years old are reopened.

New information released by HM Revenue and Customs reveals it is grappling with a backlog of 17.9m cases, almost 2m of which date back to 2004.

HMRC says it is racing to recoup about £3 billion in underpayments from between 2004 and 2008 – in addition to the £2 billion it is chasing from the PAYE fiasco in the autumn.

However we would draw your attention to the fact that HMRC can consider writing off specific underpayments if the taxpayer could have reasonably expected their tax deductions to be right.

If you are affected by this feel free to contact our office for further advice.

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Contact Us

For further information or to arrange a consultation please fill out the form or contact us using one of the following methods...

Garry White & Co
24 James Street
Ebbw Vale
NP23 6JG.

Office: 01495 302382
Mobile: 07977 729071
Fax: 01495 303260