Archive for the ‘Uncategorized’ Category
NATIONAL MINIMUM WAGE AND MINIMUM PENSION CONTRIBUTIONS ARE CHANGING
Thursday, March 14th, 2019NATIONAL MINIMUM WAGE / NATIONAL LIVING WAGE
As of 1st April 2019 the National Minimum Wage and National Living Wage is to increase.
The new rates are as follows:
| Age Group |
Hourly Rate
|
| 25 years old and over | £8.21 |
| 21-24 years old | £7.70 |
| 18-20 years old | £6.15 |
| 16-17 years old | £4.35 |
| Apprentice | £3.90 |
(all apprentices under age 19 AND any apprentice, regardless of age, in first year of apprenticeship will be on £3.90 per hour as of 1st April 2019)
MINIMUM PENSION CONTRIBUTIONS
As of 6th April 2019 the minimum amount that employers and employees must pay into their automatic enrolment pension scheme is also increasing.
The new contribution rates, as shown in the table below, will apply to your employees starting from the payment period within which 6th April 2019 falls.
| Date Effective | Employer Minimum Contribution |
Staff Contribution
|
Total Minimum Contribution |
| Current Rates
|
2% | 3% | 5% |
| 6th April 2019
|
3% | 5% | 8% |
WORKPLACE PENSIONS CONTRIBUTIONS SET TO RISE
Thursday, February 22nd, 2018
The minimum amount that employers and employees have to pay into their automatic enrolment pension scheme is increasing from 6th April 2018.
The new contribution rates will apply from the payment period within which
6th April 2018 falls.
| Date Effective | Employer Minimum Contribution | Staff Contribution
|
Total Minimum Contribution |
|
Current Rates
|
1% | 1% | 2% |
|
6th April 2018
|
2% | 3% | 5% |
THE NATIONAL MINIMUM WAGE IS INCREASING
Thursday, February 22nd, 2018
The National Minimum Wage is to increase from 1st April 2018.
The National Minimum Wage is the minimum wage per hour a worker is entitled to in the UK.
The new rates from the 1 April 2018 are shown below
| Age Group | Hourly Rate
|
| 25 years old and over | £7.83 |
| 21-24 years old | £7.38 |
| 18-20 years old | £5.90 |
| 16-17 years old | £4.20 |
| Apprentice | £3.70 |
(all apprentices under age 19 AND any apprentice, regardless of age, in first year of apprenticeship will be on £3.70 per hour as of 1st April 2018)
Property taxation – The changes keep on coming.
Wednesday, March 15th, 20172016 saw a considerable number of property taxation changes hit the buy to let investor and unfortunately the changes don’t stop there.
As from the 6th April 2016 the purchase of an additional residential property has been liable to a stamp duty supplement of 3% in addition to the current stamp duty land tax rate. The wear & tear allowance was abolished and replaced with a ‘replacement of domestic items relief’ and the reduction in capital gains tax rates was denied to the residential landlord.
As from 6th April 2017, we will see probably the most significant change begin to take effect, the restriction to financial costs.
This restriction will have a three-year phased introduction and will see the deduction available for mortgage interest and finance costs restricted to the basic rate of tax.
Year % of costs deducted from profits % of costs available as a basic rate reduction
2017/18 75% 25%
2018/19 50% 50%
2019/20 25% 75%
2020/21 0% 100%
Unfortunately, due to the method of application of this new measure more tax payers may be effected than is first thought. Many current basic rate taxpayers, may become a higher rate taxpayer once mortgage interest is restricted in the rental accounts.
