UK Immigration points-based system
From 1st January 2021 a new UK immigration points-based system will come into force. A total of 70 points is required to apply for the Settlement Scheme.
The UK’s points-based immigration policy statement (published 19/02/2020)
Keep posted for more information.
Budget 2020
Former Chief Secretary Rishi Sunak was promoted to Chancellor after Sajid Javid’s resignation last week. The cabinet reshuffle happened less than a month before the Budget 2020 which will be delivered on 11th March. Off Payroll reform and Domestic Reverse Charge are hot topics in Construction and the much atticipated Budget will confirm whether the legislation changes will be inforced, amended, pushed back or abolished.
Keep posted for more information.
Off-Payroll (IR35) Letters to Companies
January 2020 HMRC issued 43,000 letters to companies warning of the impending Off-Payroll reform for public sector. The changes are likely to go ahead from 6th April 2020 and the long awaited Budget on 11th March 2020 will confirm whether the reforms will come into force. This will affect any sub-contractor who performs their services personally through their Limited Company. The change in to ‘Off Payroll’ rules will result in the liability shifting from the Limited Company to the ‘Fee Payer’
Do you pay PSCs directly? Are you worried about the reform?
Contact us today for more information and advice. 01992 663 219
Tax Year 2018/2019 rates & thresholds.
The PAYE rates and thresholds are changing from 6th April 2018. The rate changes are in relation to PAYE Tax, NI (Classes 1,2 & 4) and statutory payments will be as follows:
Personal Tax Allowance – will increase from £11,500 to £11,850, meaning workers will be better off by approximately £70 over the year (based on earnings up to the new higher tax rate threshold and basic rate tax deducted at 20%). The higher earnings threshold is also increasing by £1,000, up to £34,500, meaning further Tax savings if earnings are within this bracket.
The National Insurance thresholds have a slight increase as well, the overall increase in the National Insurances thresholds mean workers earnings can be slightly higher before deductions are calculated.
Class 1 (PAYE) – The Lower Earnings Limit (LEL) is up to £116 per week (from £113), Primary & Secondary Thresholds will be £162 (up from £157) and the Upper Earnings Limit (UEL) increases to £892 from £866.
Classes 2 & 4 (Self-employed) – Class 2 will increase to £2.95 a week (up from £2.85 2017/2018), Class 4 thresholds also have a slight increase; lower profits limit will be £8,424 (up from £8,164) and the higher limit £46,350 (up from £45,000). The percentage rates will remain the same as 2017/2018 – 9% charged betweem the lower profits limit and higher profits limit, and 2% for above upper profits limit.
National Minium & Living Wage hourly rate increases from 01/04/2018
Aged 25+ (National Living Wage) £7.83
Aged 21-24 £7.38
Aged 18-20 £5.90
Aged under 18 £4.20
Apprentices £3.70
Statutory payments
There are also increases across the board for statutory payments. Maternity, Paternity, Adoption and Shared Parental Pay will be £145.18 per week, Sick Pay £92.05 per week and Student Loan Recovery thresholds will be £18,330 per year (Plan 1) and £25,000 per year (Plan 2) – the percentage rate of 9% remains the same.
Overall, the threshold increases are beneficial to workers and employers for 2018/2019. At 2017/2018 Year End, Marquee will email all workers their relevant summary of account (P60 for PAYE, or CIS Statement for CIS). If you require any further help or advice regarding Year End or the up and coming changes, please call us 01992 663 219.
Self-Assessment 2016-2017 Filing Deadlines.
When working on a self-employed basis in the UK, you must register for self assessment and submit your returns by the strict deadlines. For Tax Year 6 April 2016 to 5 April 2017 HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the following deadlines:
Register for Self Assessment by 5th October 2017
Paper tax returns by 31st October 2017
Online tax returns by 31st January 2018
Pay the tax you owe by 31st January 2018
When engaging with Marquee Contracting our sub contractors receive weekly and yearly statements to help with the year end self assessments. However, if you have any questions or require copy statements please contact us!
The following link is provided to help with the submissions and contacting the HMRC Self-assessment tax return
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