Tax news: page 4
- July 2024
HMRC figures show two million more higher-rate taxpayers since 2021-22
HMRC figures show the number of higher-rate income taxpayers in England, Wales and Northern Ireland rose from 4.43 million in 2021-22 to 6.31 million in 2024-25, a 42% increase.
- May 2024
Regulations made abolishing tax credits for state pension age claimants
Regulations made on 7 May 2024 end tax credit awards for claimants who have reached state pension age, moving some to universal credit and others to pension credit with transitional protection.
Annual survey of English Council Tax Reduction schemes for 2024/25 published
entitledto's annual survey of English Council Tax Reduction schemes found 41 of 296 local authorities changed how they calculate support for 2024/25, with more raising help than cutting it.
Conservative Party announces 'triple lock plus' policy to uprate pensioner personal allowance with the triple lock
The Conservative Party has said that if re-elected it would raise the pensioner personal allowance in line with the triple lock, reaching £14,340 by 2029-30 and cutting tax for around 8 million pensioners.
- April 2024
Capital gains tax allowance cut to £3,000 and dividend allowance to £500
The tax-free capital gains allowance falls to £3,000 and the dividend allowance to £500 from April 2024, the second cut in two years, meaning more people owe tax on investments and second homes.
Employee and self-employed NICs main rates cut as of April 2024
The main rate of employee National Insurance fell from 10% to 8% and the main rate for the self-employed fell from 9% to 6% on 6 April 2024, under an Act that received Royal Assent on 20 March 2024.
High Income Child Benefit Charge threshold increases to £60,000
The High Income Child Benefit Charge threshold rose from £50,000 to £60,000 on 6 April 2024, with the taper halved so the charge reaches the full Child Benefit amount at £80,000.
Around 429,000 workers start repaying student loans this April
Around 429,000 workers begin repaying student loans from April 2024, with Plan 2 graduates facing a 7.8% interest cap and a £27,295 earnings threshold before deductions.
Basic rate income tax cut proposed from April 2024
The Chancellor announced a 1p cut in the basic rate of income tax to take effect from April 2024, alongside a £3,000 rise in the National Insurance threshold from July 2022.
Canada Life research finds UK workers overpaid £5.8bn due to wrong tax codes
Canada Life research estimates UK workers overpaid £5.8bn to HMRC because they were on the wrong tax code, with almost a third of adults finding an error after checking.
Frozen Income Tax and National Insurance thresholds to take effect
Freezing Income Tax and National Insurance thresholds rather than uprating them by 6.7 per cent will raise £8 billion and cost basic rate employees £270, the Resolution Foundation says.
Further 2p cut in employee National Insurance contributions takes effect
A further 2p cut in employee National Insurance contributions, announced in the March budget, took effect in April, giving basic rate taxpayers an extra £606 a year from the combined cuts.
- March 2024
National Insurance Contributions (Reduction in Rates) Act 2024 receives Royal Assent
The National Insurance Contributions (Reduction in Rates) Act 2024 became law on 20 March 2024, cutting employee Class 1 contributions to 8% and self-employed Class 4 contributions to 6% from 6 April 2024.
Treasury makes consequential Class 2 NICs regulations
The Treasury made regulations on 14 March 2024 amending National Insurance law to reflect the end of Class 2 contributions for self-employed earners, coming into force on 6 April 2024.
Chancellor announces 2p National Insurance cut in Spring Budget
Jeremy Hunt used his Spring Budget on 6 March 2024 to announce a further 2p cut in National Insurance for employees and the self-employed, a change worth nothing directly to pensioners.
Consultation announced on household-based child benefit charge
Jeremy Hunt has announced a consultation on moving the high income child benefit charge to a household-based system by April 2026, alongside a rise in the individual earnings thresholds from April 2024.
Policy paper published on changes to First-time Buyers' Relief rules
HMRC has published a policy paper and draft legislation changing the rules for claiming Stamp Duty Land Tax First-time Buyers' Relief, covering leases held through nominees or bare trustees and the definition of a first-time buyer.
Spring Budget 2024 announces changes to the High Income Child Benefit Charge thresholds
Jeremy Hunt's Spring Budget raised the income threshold at which the High Income Child Benefit Charge starts, from £50,000 to £60,000, and the point at which Child Benefit is fully clawed back, from £60,000 to £80,000.
Spring Budget 2024 announces further two percentage point NICs cut and £3.4 billion NHS IT investment
The Spring Budget 2024 announced a further two percentage point cut in National Insurance Contributions and £3.4 billion for NHS IT, with NIESR calling it low-key and the NIC cut regressive.
HICBC threshold raised and taper halved at 2024 Spring Budget
The 2024 Spring Budget raised the High Income Child Benefit Charge threshold from £50,000 to £60,000 and halved the taper, so entitlement is now fully withdrawn at £80,000 a year.
- February 2024
Finance Bill 2023-24 receives Royal Assent
The Finance Bill 2023-24 received Royal Assent on 22 February 2024, becoming the Finance Act 2024 and enacting tax measures announced in the Autumn Statement.
- January 2024
Reports of HMRC impersonation scams rising ahead of tax return deadline
Which? reports HMRC received more than 200,000 scam reports in the year to November 2023, up 9% year-on-year, and sets out the fake call, text and email tactics in circulation.
Main primary Class 1 national insurance rate reduced from 12% to 10%
The main rate of Class 1 employee National Insurance contributions fell from 12% to 10% on 6 January 2024, under an Act of Parliament passed in December 2023.
Employee National Insurance rates cut by 2p in January 2024
Employee National Insurance was cut by 2p and self-employed rates by 1p in January 2024, with a further 2p employee cut announced in the Spring Budget.
- November 2023
House agrees Ways and Means resolutions for Finance Bill 2023-24
The House of Commons voted on the 37 Ways and Means resolutions behind the Finance Bill 2023-24 on 27 November 2023, dividing on none of them, which allowed the Bill to be introduced.
Tax Information and Impact Note published alongside Autumn Statement 2023 NICs rate changes
A Tax Information and Impact Note covering Class 2 National Insurance contribution changes was published on 23 November 2023 alongside the wider NICs rate changes announced at Autumn Statement 2023.
Chancellor announces cut in main National Insurance rates
Jeremy Hunt used the Autumn Statement on 22 November 2023 to cut the main rate of National Insurance paid by employees and the self-employed, with separate legislation following a day later.
Chancellor presents Autumn Statement 2023
Jeremy Hunt presented the Autumn Statement 2023 to the House of Commons on 22 November, cutting employee and self-employed National Insurance and abolishing the pensions lifetime allowance.
Autumn Statement cuts main employee NI rate by 2p
The Chancellor has cut the main rate of employee National Insurance by 2p, the first proper cut to that rate since 1985, with the change taking effect in January.
Autumn Statement extends mortgage guarantee scheme to June 2025 and cuts employee National Insurance by 2p
The Chancellor has extended the mortgage guarantee scheme to June 2025 and cut the main rate of employee National Insurance by 2p, alongside tax and spending measures worth around £17 billion a year.