NEW Guides & Publications17 Oct 2024
Alliotts Focus – Winter 2024
In this edition of Alliotts Focus we look at; Self-assessment registration, landlord legislation changes, dividend taxation, and voluntary business liquidations
Articles
From 6 April 2024, HMRC will start making top-up payments
Employees who contribute to an occupational pension scheme under a net pay arrangement do not currently benefit from any tax relief if their earnings are below the personal allowance. This anomaly will be rectified from 6 April 2024 when HMRC will start making top-up payments.
A net pay arrangement is where pension contributions are deducted from pay before tax is calculated. The anomaly arises because someone in a similar situation, but making contributions with relief given at source, benefits from 20% relief. The change will mean low earners benefiting from the same tax relief regardless of earnings.
Top-up payments
HMRC’s top-up payments will be introduced from tax year 2024/25 onwards, with the top up not paid until after the end of the tax year. The implementation delay is due to the significant HMRC system changes required.
Although top-ups are only estimated to be an average of just over £50 a year, more than a million employees should benefit – the vast majority of them women.
The government’s policy paper explaining the change can be found here.
If you require advice please contact us.
More & Other Musings
View all related contentNEW Guides & Publications17 Oct 2024
In this edition of Alliotts Focus we look at; Self-assessment registration, landlord legislation changes, dividend taxation, and voluntary business liquidations
NEW Articles17 Oct 2024
Finance for independent films in the UK has received a huge boost courtesy of the new enhanced Audio Visual Expenditure Credit (AVEC) known as Independent Film Tax Credit (IFTC)
NEW Articles16 Oct 2024
Tax rises are a dead cert, we all know that, but what else can we look forward to?
NEW Articles11 Oct 2024
Rental property has been set a government target to meet an energy performance certificate (EPC) rating of C by 2030. Although new funding in support of this initiative has been announced, the grants will not help all landlords.
NEW Articles11 Oct 2024
With a ‘black hole’ of £22 billion to fill, there are plenty of groups giving Rachel Reeves advice.