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Welcome to our articles and news snippets. The bookkeeping landscape is fast-paced and we pride ourselves on staying up to date on the latest comings and goings.
An increase to the National Living Wage
The National Living Wage is going up to £11.44 per hour and will apply to 21- and 22-year-olds for the first time. This’ll happen from April next year.
It’s good news for those battling with inflation, but it could also have another added benefit…
Right now, you need to earn more than £10,000 to qualify for auto-enrolment, but the National Living Wage rise could bring some people above the threshold for the first time. Meaning they’ll get a pension plan automatically opened for them and paid into on their behalf by their employer. Making saving for their future a little bit easier.
Pensions plans are investments. They can go down as well as up in value and may be worth less than what was paid in. Tax rules and legislation may change and your individual circumstances and where you live in the UK will have an impact on the tax you pay.
The information here is based on our understanding in November 2023 and should
not be taken as financial advice. If you’re unsure please speak to financial adviser.
Income Tax — basis period reform
HMRC has been working on creating more awareness for the basis period reform changes from April 2024.
In February 2024, HMRC will be sending our unrepresented customers a mailshot which will give information on the basis period reform changes and signpost them to the support available to help with the changes.
HMRC will also be releasing a basis period reform YouTube video that will help our customers with the changes and highlighting what support is available.
Further guidance on Income Tax: basis period reform is available on GOV.UK.
Changes to Corporation Tax reminders, statements and receipts
From September the following Corporation Tax letters will no longer be issued:
- CT205/A return reminder
- CT608 instalment payment reminder
- CT207 interest statement
- CT209 payment receipt
From October HMRC will also stop sending the CT603A agent list of issued notices to deliver Company Tax return (customers will still receive the CT603 notice to file).
HMRC will also trial no longer sending CT208 reminders before they stop sending them permanently. The trial runs from September until January 2025. HMRC will monitor the effect and stop the trial if they see a negative impact on our customers or process. The letters to be trialled are:
- CT208 PR1 payment reminder
- CT208 PR2 return and payment reminder
- CT208A PR2 return and payment reminder agent copy
Further guidance is available on GOV.UK at:
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