Tax Changes – Plan for Health and Social Care

Health - Medicine

9th September, 2021, Henry Pettitt

Henry Pettitt, Partner at Stephenson Smart in Great Yarmouth, explains how the Government’s tax changes and new plan for supporting the UK’S health and social care system will work.

How will the government’s tax changes from next April affect you?

On 8 September we witnessed one of the biggest announcements to date since the beginning of the pandemic, with tax changes agreed to fund £12bn a year to support the NHS and social care backlog across the UK.

From April 2022 National Insurance contributions (NICs) will increase by 1.25pc for one year only for employees, employers and the self-employed.

This will cover both Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) contributions, although State Pension Age are not impacted by the April 2022 changes.

Essentially if you earn more, you will pay more.

From 2022/23, if you earn around £24,100 you will have to pay in the region of £180 extra in National Insurance, while someone earning £67,000 will contribute another £715.

Health and Social Care Levy

From April 2023 the National Insurance contribution rates will decrease back to the levels of 2021/2022, with the introduction of a new Health and Social Care Levy.

The new ring-fenced levy of 1.25pc will apply to those who pay Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs.

It will also be extended to those over State Pension age who are in work, with employment income or profits from self-employment above £9.568.

The levy will be administered by HMRC and collected through the current reporting and collection procedures for NICs – Pay As You Earn and Income Tax Self-Assessment.

The government will also increase the rate of income tax paid by people who receive dividend income from shares by 1.25% from April 2022.

 

These tax changes are all part of the need for a long-term solution to funding health and social care, allowing everyone to pool and share risks and resources.

You can read the government’s

Please if we can help you to plan for these forthcoming tax changes to National Insurance contributions and Income Tax.

Profile:

 

Meet Dan Jastrzebski

Dan Jastrzebski ACA CTA

26th November, 2019, Stephenson Smart

Meet Dan Jastrzebski. Dan is one of the managers at the King’s Lynn office of Stephenson Smart.

He is a Chartered Accountant as well as a Chartered Tax Advisor, and he can assist businesses and individuals with all aspects of their accountancy and taxation needs.

Dan has been working in the accountancy industry in the local area for almost a decade and has a wealth of knowledge.

On a day to day basis Dan deals with accounts for medium and small companies, individuals and Trusts, plus ensuring Corporation and Self-Assessment Tax Returns are completed.

He also works on tax planning for Income Tax, Capital Gain Tax and Inheritance Tax.

In his spare time Dan is a keen sportsman, especially football, running and golf.

Earlier this month he completed the Great North Run and is due to take part in a more local half marathon event in October, the Lowestoft Half Marathon.

Dan is also very active in raising money for local charities, people in need and worthy causes.

He does this via his current role of Chairman of King’s Lynn Vancouver Round Table 1114.

The Round Table recently raised £5,000 for the National Autistic Society West Norfolk through helping to organise the King’s Lynn Beer Festival which was held at The Stuart House Hotel in July.

Stephenson Smart like to do their bit for the local community too, and were one of the gold sponsors of Round Table’s other marquee event of the year, The South Wootton Beer Festival.

The event, in its 3rd year, has raised significant amounts of money for The Norfolk Hospice, Tapping House this year, with the final figure due to be announced shortly.

If you are looking for expert, tailored advice from Dan or one of the other members of Stephenson Smart’s professional and approachable team then call the office on 01553 774104.

Keeping pace with property tax changes

Stephenson Smart - Stephenson Smart

26th November, 2019, Stephenson Smart

Chris Goad FCA of Stephenson Smart explains the forthcoming new Capital Gains Tax rules for people disposing of property.

 

For people about to dispose of property there are important tax changes on the horizon, because from April 2020 you’ll need to factor in new capital gains tax (CGT) rules.

Until now, private residence relief (PRR) has meant there is usually no CGT to pay on the sale or disposal of your main/only residence – but the 2018 Budget announced important changes to the final period exemption and lettings relief.

Currently, the final period exemption means you’re generally not liable for CGT on the sale of a property which was once your home (even if you no longer live there) for the last 18 months of ownership.

However, from April 2020 that will be cut to nine months. The change could affect significantly higher numbers of property transactions, and if you’re buying a new property before selling the old one, it will be important to sell within nine months to avoid a possible CGT bill.

As for lettings, the current rules allow up to £40,000 relief (£80,000 for jointly-owning couples) for letting part/all of a present or onetime main residence.

Under the new regime, lettings relief will only be available when occupation is jointly shared with a tenant.

These new rules will apply to disposals from April 2020 regardless of when the period of letting took place which is likely to considerably reduce the scope of the relief.

April 2020 will also see a major change to current CGT deadlines when disposing of residential properties.

In the future, there will be a 30-day window after the disposal completion date in which to file a return, calculate and pay the CGT due.

If no payment is due (for example, if PRR is available in full) reporting will not be required.

The change mirrors the current obligations of non-UK residents.

Since April 2019, non-resident CGT has applied to direct and indirect disposals of UK land or property, with non-resident companies being chargeable to corporation tax.

There is a 30-day reporting requirement even if there is no tax to pay, and where tax is due, it must be paid within 30 days of completion.

As with any changes to taxation, complexities can arise and taking your individual circumstances into account is essential.

It’s always prudent to discuss the potential tax implications of any property transaction, and for peace of mind, please contact one of our qualified tax advisers for more details and information specific to your situation.

Why choose Stephenson Smart?

Our King's Lynn team at Stephenson Smart

26th November, 2019, Stephenson Smart

Our history

At Stephenson Smart we are proud to have provided outstanding accountancy advice and customer service to numerous generations of our clients throughout King’s Lynn and West Norfolk for 100 years. And now with offices throughout Norfolk and Cambridgeshire we are perfectly placed to provide local, expert services whatever your business size or requirements.

Our staff

Our staff are highly qualified in all aspects of general accounting and many are specialists in their fields, having been with the firm for many years. Their length of service is a testament to Stephenson Smart’s investment in their well-being and continuous professional development, training and support. We are proud to provide a stimulating, challenging and rewarding working environment and the continuity of service this has bred has enabled them to build strong relationships with our clients: understanding their business history and encouraging their future growth. Our staff are encouraged to invest the time to get to know their clients in order to provide tailored, personal advice – resulting in true value for money for our customers.

Our ethos

We strive to provide proactive, tailored advice to our expanding customer base, while remaining true to our ethos of straightforward, practical accountancy advice with no jargon.
Our staff undergo regular training to ensure we are at the cutting edge of developments in the industry and we are experts in the full range of cloud accounting software and bookkeeping services. Stephenson Smart is one of the first accountancy firms in the country to provide a full probate, inheritance tax, trusts and estates department.
With fixed fees available, no charges for telephone calls and initial meetings free of charge, you can be sure of no nasty surprises.
We want to provide you with the right advice, on time, every time. Best of all our services are a true investment in your business: we aim to save you money, time and worry, giving you back more time to spend on what’s important to you.

Tax Compliance & Tax Planning

Tax Compliance & Tax Planning

23rd February, 2019, Stephenson Smart

Do you feel you are overpaying and is there potential to mitigate some of that liability, whether it be in your business, personal life or on death?

Let us help.

The tax system is complex and here at Stephenson Smart, help is at hand from our highly trained and experienced tax accountant specialists to unravel this complicated web of rules and interpret legislation.

There are a number of areas of taxation to consider including:

  • Income Tax
  • Corporation Tax
  • Capital Gains Tax
  • Inheritance Tax
  • Value Added Tax
  • PAYE
  • National Insurance
  • Pension Automatic Enrolment
  • Checks and Investigations

 

There are many allowances, exemptions and reliefs available and our team can proactively assist with applying these to your personal circumstances.

Many of the taxes apply to one situation and we pride ourselves in offering a comprehensive service, looking at individual needs and short and long term objectives.

How can Stephenson Smart help with taxation?

We plan ahead so we can foresee any potential taxation issues on the horizon and address any issues in the most tax-efficient way.

Whether you are an individual struggling with self assessment or a large group of companies requiring advice on business structure and complex tax arrangements, our qualified team of tax accountants will be pleased to help.

We liaise with HM Revenue & Customs daily and are adept in dealing with tax investigations.

Don’t let your tax be a taxing process.

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