May 2024 

Friday's Fortnightly Tax Tip - National Insurance Cuts Posted on 31st May 2024 

As of the 6th April 2024 the main rate of Employee National Insurance was cut by 2%. Employee’s that have income above the primary threshold will now pay National Insurance Contributions at 8%, up to the Upper Rate Threshold, which has remained at 2%. 
 
The main rate of Class 4 National Insurance contributions for the self-employed was reduced by 3% in the 2024-25 tax year. Profits that surpass £12,570 will now be subject to Class 4 National Insurance at 6%. Profits that surpass the Higher Rate Threshold of £50,270 will be subject to Class 4 NIC at 2%. 
More information can be found here
For more guidance call the team at Holmes Accountancy on 01908 315716 or contact us here. 
 
The tax tip is provided for general guidance only; further advice should be sought, for specific issues. 

Friday's Fortnightly Tax Tip - High Income Child Benefit Charge Posted 14th May 2024 

The Chancellor has announced that from the 6th April 2024, the high income child benefit charge threshold will be increased from £50,000 to £60,000. 
 
If you currently claim child benefit and you or your partner earn above £50,000 in the tax year, 1% of the child benefit is repayable to HMRC, with 100% being repayable if you earn £60,000 or more. 
 
As of the 6th April 2024, the child benefit will only start to become repayable to HMRC on earnings above £60,000. For every £200 you or your partner earns above £60,000 in the tax year, 1% of the child benefit is repayable to HMRC, with 100% being repayable if you earn £80,000 or more. 
More information can be found here
For more guidance call the team at Holmes Accountancy on 01908 315716 or contact us here. 
 
The tax tip is provided for general guidance only; further advice should be sought, for specific issues. 

March 2023