Newsletter 125

Headlines from our latest newsletter.  Please click on any of the links below for more information :

WELCOME TO A NEW MEMBER OF STAFF

This month we are pleased to announce the addition of a new member of our team.

Amy Cotton has joined Walker Thompson in our Payroll and Client Services section and she will hopefully soon become a familiar name and face to clients who use our bookkeeping and payroll services. Her experience in Sage and Xero software will be a great addition to our existing business.

Amy is a qualified MAAT who began her career in the professional sector before spreading her wings into industry and commerce.

She has most recently been working for CNC Technologies in Warwickshire.

Outside of work Amy has a young family who takes up quite a lot of her time but when she does find a few moments to herself she enjoys music and the cinema.

GDPR

New data protection rules from General Data Protection Regulation (GDPR) will replace the Data Protection Act in the UK from 25 May 2018 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#GDPR

EMPLOYER-SUPPORTED CHILDCARE GETS A REPRIEVE

Many employers help employees with childcare costs, often by providing childcare vouchers by way of salary sacrifice. Following the roll out of Tax-Free Childcare (TFC), the new government scheme to help working parents, existing Employer-Supported Childcare (ESC) schemes were expected to close to new joiners from April 2018 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Employer

MAKING TAX DIGITAL FOR VAT FROM APRIL 2019

The regulations to bring into force Making Tax Digital for VAT (MTDfV) are now law, and digital VAT returns will be required from 1 April 2019 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Digital

WELSH LAND TRANSACTION TAX INTRODUCED

From 1 April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT). LTT will be collected by the Welsh Revenue Authority (WRA). HMRC has published guidance on the introduction of the new tax and the way in which property transactions straddling 1 April 2018 and cross border transactions will be dealt with - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Welsh

INCOME TAX CHANGES FROM 6 APRIL 2018

The personal allowance for 2018/19 is £11,850. However, some individuals do not benefit from the full personal allowance. There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000, which is £1 for every £2 of income above £100,000. So for 2018/19 there is no personal allowance where adjusted net income exceeds £123,700 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Changes

UPDATE FOR EMPLOYERS AND THEIR EMPLOYEES

HMRC’s latest Employer Bulletin includes useful updates for employers as we approach the start on the new tax year on 6 April 2018 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Update

SPRING STATEMENT ANNOUNCES CONSULTATIONS

Chancellor Philip Hammond delivered his Spring Statement on Tuesday 13 March 2018 - see more at : http://www.walkerthompson.co.uk/news/newsletter-125/#Spring

RISE IN NUMBER OF TOP LEVEL TAXPAYERS

The number of higher rate taxpayers (paying at the 40% & 45% rates) is now 1 in every 6 compared with 20 years ago when 1 in 12 taxpayers paid at the higher rate.

According to HMRC nearly 5 million taxpayers pay some tax at the higher level.

Commentators are viewing this as a stealth tax by the back door as the income level at which 40% tax starts has not risen in line with general earnings.

MINIMUM WAGE INCREASE

More than 2 million employees will receive an automatic pay rise this week as minimum wage levels increase. 

Employers need to ensure that they make the necessary payroll adjustments for anyone earning at or around the appropriate levels.

TAX FREE DIVIDEND ALLOWANCE REDUCES

A brief reminder that the tax free allowance applicable to dividends reduces from £5,000 to £2,000 on 6 April 2018. 

Cash extraction from SME’s will therefore be squeezed even tighter and Director Shareholders may need to seek out other routes eg; pension schemes in order to balance out the best approach.