March Newsletter 2024
With Easter soon upon us and spring fully with us, please find our latest financial and regulatory updates that may be useful ine nsuring you take full advantage of all tax-saving strategies.
Living Wage Hourly Increase from April
The age threshold for the National Living Wage will be reduced to 21-year-olds for the first time.
Minimum mandatory rates for 2024/25 (applicable from 1 April2024) are as follows:
National Living Wage - 21 Years plus £11.44
18 to 20 Year Olds £ 8.60
16 - 17 Year Olds £ 6.40
Apprentice/Under 19 or in 1st Yr of apprenticeship £ 6.40
Late Tax Return Penalties
Every year almost 1 million people miss the tax filing deadline and have to pay tax return penalties.
There are different kinds of tax return penalties:
A fine for filing late: even if you owe no money in taxes
Interest and surcharges will be incurred for paying your tax bill late.
Please follow this link for more information on self-assessment penalties and Ltd company penalties.
HMRC Clamps Down on Undeclared Dividend Income
Be aware from 4th February 2024, HMRC is writing to company owners regarding the potential under declaration of dividend income.
This is prompted by a decrease in company reserves despite reported profits thus hinting at undisclosed dividend payouts.
All our clients are fully declared and compliant however, if you are not an ABMV client individuals are urged to acknowledge any letters received, whether or not they believe there has been an under-declaration of dividend income.
High Income Child Benefit Charge
From April 2024 the High Income Child Benefit Charge (HICBC) threshold will increase from £50,000 to £60,000. By April 2026, it will be assessed on a household basis, with a consultation to come to achieve this.
The upper limit will become £80,000 (from £60,000), providing an estimated £1,260 boost on average for around half a million working families.
If your or your partner’s income is over the threshold for the HICBC, you can choose to receive child benefit payments and then payback any tax due at the end of each tax year.
You do this by submitting a self-assessment tax return.
You will need to do this even if you are employed and earning through PAYE.
Government SME: Help To Grow
The Government has committed to supporting 5.5 million small businesses by updating its Help to Grow campaign and introducing a new Small Business Council next month.
With small businesses constituting 99.9% of all UK enterprises, employing 27m people, and generating £4.5 trillion in annual turnover, the Government designates 2024 as “the year of the SME”.
ABMV Company Update
You may already be aware that we have introduced the ability to ePay your invoice through the ABMV website and/or via the ePay link on your individual invoice.
More details to follow next month.
