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Our concise reference to important dates when employee Class 1 National Insurance Contributions (NICs) decrease, impacting the dividend allowance for the 2024-25 tax year.

The recent powers introduced by the Charities Act 2022 continue the trend of simplifying processes for charities wherever feasible. Trustees are advised to review the changes applicable to their charity and utilize our updated guidance to navigate the new procedures. For those who have already submitted applications for governing document changes, there is no need to reapply.

The revamp of R&D relief will commence from April 2024, combining the two systems and lowering the intensity threshold from 40% to 30% for SMEs with a soft landing. The Chancellor has decided to eliminate Class 2 National Insurance contributions for self-employed individuals and reduce the rate of Class 4 NICs. The Chancellor has announced that full expensing, a tax break for investments in IT equipment, plant, and machinery, will now be a permanent fixture, eliminating the previous uncertainty caused by its three-year limit. Another announcement was in relation to a 2% reduction in the employee National Insurance rate, bringing it down to 10% starting in January. This change will decrease the total tax for basic rate taxpayers to 30%. In addition a £4.3bn support package for small businesses over the next five years has been announced. This includes freezing the small business multiplier at 49.9p for the fourth consecutive year, while the standard multiplier will be increased to 54.6p by September. The small rate multiplier will also be adjusted to match the Consumer Price Index (CPI) inflation.

Tax deductions cannot be claimed on the cost of capital assets. Instead, deductions are typically allowed for revenue costs, such as the expenses associated with running an office or factory, and the cost of goods and materials purchased for resale. However, there are numerous allowances for capital assets that can be utilized to decrease tax costs. By claiming the appropriate allowances and deductions, you can significantly reduce your tax.