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Possible National Insurance Cuts

23 May 2024
The Chancellor recently hinted at the possibility of further National Insurance cuts, as preparations for the general election continue.


This crucial information will impact everyone working and living in the UK, with expectations of reducing the tax burden.


The UK Parliament stated that further cuts to National Insurance would save taxpayers hundreds of pounds.

Plan Details

In a recent speech, the Chancellor indicated that if feasible, there will be further reductions in the dual tax on work this autumn.


The previous two cuts only adjusted National Insurance.


There were no changes to the income tax threshold, meaning that as wages rise, people have to pay more income tax.


Dual tax implies that the income tax threshold may be included in the Conservative Party’s tax reduction plans.

Current Tax Levels

The UK is facing its highest tax levels in 70 years, which is expected to have a suppressive effect on citizens’ lives and business activities.


High taxes mean more money goes to government rather than into the pockets of the public.


Different political parties have their own views on tax issues, which will be a hot topic in the upcoming election.

Why Pay National Insurance?

Firstly, National Insurance is a legal requirement, and all eligible citizens must pay it.


National Insurance provides protection in cases of unemployment, illness, child-rearing, and retirement.


It also entitles individuals to receive a state pension upon reaching retirement age, ensuring a stable income during retirement.

Do You Have to Pay National Insurance?

Employees aged 16 and over must pay National Insurance once they earn more than £242 a week.


For the self-employed, National Insurance is mandatory if annual profits exceed £12,570.


If you plan to live in the UK long-term and wish to receive a pension, you can also make voluntary contributions.


You need to continue contributing until you reach the state pension age.

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Weekly News – J&P Accountants

17 May 2024
– Bournemouth to introduce “tourism tax” from July.

– Gang set up 90 “companies” to gain £800,000 through VAT and financial fraud.

– NAO says taxpayers collectively spent 798 years waiting to speak to HMRC.

– Thousands of drivers facing “sunset tax” .

Bournemouth to introduce “tourism tax” from July

Bournemouth has become the first seaside resort to introduce a “tourism tax.”


From July 1st, 73 large hotels will charge £2.40 per room per night for all overnight guests.


For an average family of four, this will add nearly £34 to the cost of a week’s holiday.


The committee claims the fee will be used to create a clean, green, and safe local environment.

Gang set up 90 “companies” to gain £800,000 through VAT and financial fraud

Recently, HMRC reported a case of VAT fraud and warned taxpayers to beware of new scams.


The gang set up a “recruitment company” and stole job applicant information.


They then listed themselves as directors of fake car dealerships without people’s knowledge and applied for VAT refunds.


The gang has all been convicted and sentenced to over 10 years in prison.

NAO says taxpayers collectively spent 798 years waiting to speak to HMRC

A report from the UK’s National Audit Office shows that HMRC’s telephone communication service is below expected standards.


In the last financial year (2022/23), taxpayers waited an average of 23 minutes, compared to 5 minutes five years ago.


In reality, it’s even more difficult to communicate with HMRC advisers, with calls being automatically disconnected.


NAO hopes for a more practical service plan from HMRC to alleviate taxpayer dissatisfaction.

Thousands of drivers facing “sunset tax”

Denbighshire County Council in North Wales has scrapped its free parking policy.


The council plans to introduce a new “sunset tax,” requiring payment for seaside parking after 5 pm.


For residents and visitors to the town, winter parking will cost £1.50 for two hours and £2 for the rest of the time.


Locals claim this is an absurd charging system and refuse to pay the “sunset fee.”

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Weekly News – J&P Accountants

10 May 2024

HMRC has revealed that a highly rated restaurant in Manchester owes hundreds of thousands of pounds in taxes

HMRC said one of Manchester’s highly rated restaurants owes hundreds of thousands of pounds in taxes.


Moreover, businesses and individuals in Greater Manchester will be listed as “deliberate tax defaulters” once their tax debts exceed £25,000.


This includes nearly ten businesses or individuals such as soft drink wholesalers and real estate companies.


Currently, HMRC has made this public and is awaiting further leads to recover the debts as much as possible.

UK company registration fees have been increased across the board

Recently, Companies House announced an overall increase in fees affecting all existing and new UK companies.


A range of fees, including those for registering companies by post, changing names, and filing confirmation statements, have been raised.


Before May 1, 2024, the fee for online company registration was £12, but now it’s £50.


Officials pointed out that despite the increase, the UK still has the lowest fees in the world.

Free childcare applications for a new age group will open this Sunday

Starting this Sunday, working parents in England with children aged nine months can apply for up to 15 hours of free childcare per week.


Applications for this age group will be granted from September.


Starting September 2025, once eligible, all working parents with children under five will be able to apply for up to 30 hours of free childcare per week.


This scheme currently only applies to the England region, while other regions can check local tax policies.

The Bank of England has announced that the benchmark interest rate will remain unchanged at 5.25%

This Thursday noon, the Bank of England announced its latest decision on the benchmark interest rate, continuing to maintain it at 5.25%.


So far, UK inflation rates have not fallen below 2%, which is one of the important factors for keeping the rate unchanged.


More experts predict that interest rate cuts won’t be seen until at least after August, assuming market conditions improve.

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