Newsroom
The child benefit tax rule changes
- April 10, 2024
One of the few surprises in the Spring Budget was the change affecting how child benefit is taxed for higher earners. The high income child benefit charge (HICBC or ‘hicbic’) was introduced in January 2013 to reduce child benefit paymentsforhigherearners. It was considered an arbitrary piece of legislation by some as the charge was triggered […]
Out goes hand sanitiser, in comes vinyl…
- April 10, 2024
The Office for National Statistics (ONS) has been sorting through its inflation shopping basket. Every year in March, the ONS announces the results of a review of the approximately 750 items which it uses to compute inflation indices, such as the Consumer Price Index (CPI). The annual review is a reminder that the calculation of […]
The UK ISAslides into view
- April 10, 2024
One of the many well-trailed announcements in the Spring Budget was the launch of a UK ISA. However, both its arrival and interest may be uncertain. Alongside the Budget, the Treasury published a consultation paper on a possible fifth ISA variant, the UK ISA. To quote the paper, the rationale behind the UK ISA is […]
The march of the higher rate taxpayer
- April 10, 2024
New calculations issued alongside the Spring Budget show just how higher rate taxpaying status is becoming ever more common. The Office for Budget Responsibility (OBR) received plenty of attention leading up to the Budget. It was widely portrayed in the mediaas the body that placed constraints on the Chancellor’s tax-cutting options ahead of the coming […]
Born after 1978? Keep an eye on State pension age
- April 10, 2024
An independent report suggests that the State pension age (SPA)should rise much faster than planned. The next SPA rise begins in under two years with a phased increase to 67 ending in April 2028. Yet, neither main political partiesare likely to say much about further SPA changes in their upcoming election manifestos. The move from […]
25 years of ISAs
- March 9, 2024
Individual Savings Accounts will celebrate their 25th birthday on 6 April 2024. A quarter of a century ago, Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs), both inventions of Conservative chancellors, were replaced by Individual Savings Accounts (ISAs), introduced by a Labor chancellor. To a large extent, the exercise was a rebadging […]
-
Pension Dashboard Programme Delayed…
Pension Dashboard Programme Delayed… 12 June 2023 was a day of procrastination for the new Pensions Dashboard Programme, with a new deadline set for 2026. “[The Treasury] should challenge the industry to make a pensions dashboard available to consumers by 2019, bringing together industry and consumer representatives to help them set direction and drive progress.”
-
FCA Takes on Crypto: handle with great care
FCA Takes on Crypto: handle with great care The Financial Conduct Authority (FCA) recently announced a plan for tougher regulations of cryptoassets, such as Bitcoin. Recently published research undertaken for the FCA showed that in August 2022, nearly five million UK adults owned cryptoassets, typically cryptocurrencies such as Bitcoin and Ethereum. That was more than
-
Not That Interested: savers short-changed on rate hikes.
Not That Interested: savers short-changed on rate hikes. The Bank of England has been looking at the impact of its regular interest rate increases since December 2021, with analysis revealing savers are being short-changed. Every three months the Bank of England issues a weighty Monetary Policy Report. In it the Bank sets out the
-
Tax is too complicated… say the legislators
Tax is too complicated… say the legislators A parliamentary committee has been examining efforts to simplify tax, but progress is still a long way off. Among other things, last year’s ill-fated ‘mini-Budget’ was notable for the swiftness with which Jeremy Hunt reversed most of the proposals it contained. The promise of reduced corporation tax and
-
Inflation pledge met, but what’s next?
The Prime Minister has met his pledge of halving inflation, but we’re not out of the woods yet. Source: ONS, Ofgem. In the first week of 2023, the then still new Prime Minister, Rishi Sunak, set out “five immediate priorities” for his government. The first of these was: “We will halve inflation this year to
-
Financial Christmas gifts for children
It’s that time of year again when financial gifts may be given… and HMRC is watching. Tax is never far away from anything you do and making gifts to children at Christmas is no exception. There are a few key tax areas you should bear in mind. Inheritance tax (IHT) As with any gift you
-
Getting a head start: retirement planning attitudes in 2023
A survey of 6,000 people, aged 18 to 80, revealed starkly different views on retirement across the generations. According to the Office for National Statistics, the median age of the UK population in mid- 2021 was 40.7 years, up from 39.6 in mid-2011. Perhaps that gradual ageing and the impact of Covid-19 on working patterns
-
Magnificent Seven 2.0 rides again
Forget Yul Brynner, Steve McQueen et al. There is another more significant septet in the United States these days. The original version of ‘The Magnificent Seven’ was released in 1960 and remains to this day an iconic Western film. However, the term ‘Magnificent Seven’ now has a very different meaning for many in the US.
-
The Autumn Statement give and take
The Chancellor’s national insurance contribution (NICs) ‘giveaway’ is no match for his income tax ‘takeaway’. The central surprise in Jeremy Hunt’s second Autumn Statement was a major reduction in NICs. • For employees From 6 January 2024, the main class 1 contribution rate on earnings between £12,570 and £50,270 will be reduced from 12% to