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.
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.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.