Thomas Mansfield Solicitors’ Post

We break down the key points for #employers from the UK Government's 2024 #AutumnBudget, which includes changes to minimum wage, employer National Insurance Contributions, and the taxation of umbrella companies. #employmentlaw

The Conservative manifesto is out and whilst there is a fair amount of data and policy within it, not much expansion on the points that are being made, making it really hard to interpret who, when and why! See below for the changes to policy for the Conservatives 🌳 : 🌳 The current government have continuously cut National Insurance for employees over the last few years and their manifesto continues that trend, with a pledge to cut employee's national insurance to 6% by 2027 estimating a tax saving of £1,350 from the start of this year if you earn £35k per annum 🌳 Continuing with National Insurance, the Conservatives also want to completely abolish National Insurance contributions for Self employed workers by the end of this next parliament. This would mean 4 million self employed people would no longer pay National Insurance at all 🌳 Another interesting pledge and one that always becomes a huge point of discussion around April time with agency partners is National Living Wage. The government are looking to continue their algorithm of working out the living wage for the next two years, meaning it can expected to be around £13 per hour by 2026 🌳 Tax avoidance - rather appropriate in our sector and whilst the positive headlines are that the estimate gain from the 200 policies the Conservatives have brought in since 2010 sits at around £6.7billion per year, the suggestion is they will continue to build on this by adding another £6billion per year. The confusion however, is that nowhere in the manifesto does it state how, who they will target, what reforms they will put in place to achieve an extra £6billion etc.. so leaving us very much in the dark The closing words on this manifesto would be that nowhere in the manifesto is there any mention of employment rights, IR35 or job/ contract security which could be interpreted as... no change needed 😢 What are your thoughts on this? #conservatives #payroll #employment #election

Catch up on the latest from HMRC. Every two months, HMRC publishes their Employer Bulletin. In such a rapidly changing environment of new government and legislation, it makes sense to stay on top of things. As we approach the latest release, catch up with all the essential business information, including: - PAYE Settlement Agreement calculations 2023 to 2024 - paying Class 1A National Insurance contributions - improving the Self-Serve Time to Pay service for PAYE and VAT customers - Self Assessment threshold change - Spotlight 64 - warning for employment agencies using umbrella companies - employment-related securities - end of year return deadline for employee share schemes. If you are confused or don’t have time to read this, talk to us to see how we can help you with tax matters. The link is in the comments #hmrc #employment #tax

Here's what small business owners must know about the recent announcements: *Employers' National Insurance: Starting April 2025, contributions will rise by 1.2 percentage points to 15%. The secondary threshold at which employers start paying National Insurance on a worker's salary will be cut from £9,100 a year to £5,000. *Employment Allowance: The allowance increases from £5,000 to £10,500, benefiting around 865,000 small businesses by eliminating their National Insurance liabilities. *Tax Thresholds & Minimum Wage: From April 2028, personal tax thresholds will adjust with inflation. Additionally, minimum wage for employees aged 21 and older rises to £12.21/hour in April 2025—an annual boost of approximately £1,400 for full-time workers. #SmallBusiness #BusinessOwners #NationalInsurance #EmploymentAllowance #TaxThresholds #MinimumWageIncrease #FinancialUpdates #UKEconomy

Among many things, speculation around employers’ NI brings IR35 into sharp focus. If employers’ NI rises, so does the cost of non-compliance under the off-payroll rules. This is because HMRC will issue firms a tax bill made up of missing employment taxes in the event a contractor has been wrongly engaged outside IR35. Along with highlighting the importance of compliance, it shines the spotlight on businesses that insist all genuinely self-employed contractors work on the payroll. The cost of engaging workers on the payroll could well increase, which begs the question: why are some businesses still taking this risk-averse approach to the off-payroll rules? #IR35 #employersNI #Budget #flexibleworking #contracting 

🏢 British businesses are smarting after Finance Minister Rt Hon Rachel Reeves’ bumper tax-rising budget, with analysts warning that the measures could slow hiring and push up inflation. 💸 A widely anticipated hike of employer NI tax allowed Reeves to honour the Labour government’s manifesto pledge not to raise taxes on “working people,” while going some way in plugging what she has claimed is a £22 billion public funding “black hole.” 💼 But business and industry analysts — as well as the opposition Conservative party — have slammed the move as disingenuous, saying that it would ultimately hit employees by limiting companies’ ability to boost wages and hiring. That, they said, undermines the government’s pro-growth agenda. #UK #politics #economy #budget #tax #business #employers

As I see it, this Labour government is looking to tax employers for employing people, which seems ludicrous when only yesterday they argued that their focus was growth. Seems to me that removing cost burdens on employers is a far better way to stimulate economic growth. more people in work, especially at the lower income levels, will improve 'tax take' and inject cash [fuel] into the economy whilst simultaneously reducing numbers on state benefits. National Insurance is a misnomer to obfuscate total 'tax take' from employers and employees. A radical overall of the tax system to simplify it and minimise loop-holes would be infinitely better than tinkering. Just look at the messaging: promises of not increasing income tax levels or National Insurance for working people and then, potentially, increasing employers taxes. Labour seem to correlate "employer" to 'over-paid, wealthy tax avoider' (or possibly cash cow). For the vast majority of small- and medium-business owners this couldn't be further from the truth. BBC News - PM does not rule out NI rise for employers https://lnkd.in/ehZmXFqJ

💼 Claiming employment expenses? HMRC has updated guidance on the evidence needed for PAYE and P87 claims. ✅ Keep receipts, invoices, and proof of payments ❌ Claims without evidence may be delayed or rejected. 🔗 Read the full guidance here https://ow.ly/VnK550Uwuig #TaxTips #HMRC #EmploymentExpenses

Rachel Reeves’ budget has certainly got business owners talking, especially about changes to National Insurance, increases in the minimum wage, and new employment protections. None of this is good news for TAB members, many of whom are now reviewing their hiring plans, pay structures, and growth plans for 2025.    For practical advice on how to handle these shifts with confidence and clarity, visit TAB’s latest blog: https://lnkd.in/ekUVSNcY #BusinessGrowth #TABBoards The Alternative Board Thames Valley

UK companies are set to hold back their hiring plans due to the chancellor's £40bn tax increase. It is said that nearly two-thirds of companies plan to reduce recruitment, layoff staff or delay employee pay raises. Companies are criticising Rachel Reeves’ latest plan and claim that her tax rise will hinder competitiveness and growth potential. Businesses fear the national minimum wage rise and workers' rights reforms will add to that financial pressure.⁠ ⁠ Let us know your thoughts on the rising tax increase for UK companies.⁠ ⁠ Check out the full article below:⁠ https://lnkd.in/eHwtf7JG⁠ ⁠ ⁠ #vegan #veganaccountant #accountant #businessadvice #businessconsulting #accounting #eco #veganbusiness #businessgoals #tax #veganuary