jsheeky, Author at Handbridge Accountancy Solutions

Making Tax Digital

jsheeky — Wed, 25 Feb 2026 08:31:53 +0000

From the 6th April 2026 sole traders and individuals with property income will have to follow the requirements for Making Tax Digital if they have an income ( sales ) of more than £50,000 a year. The requirements are that business records have to be kept digitally using MTD compatible software and that each quarter summary data of income and expenses is sent to HMRC via the software. From 6th April 2027 these requirements will be extended to traders and landlords with an annual income of more than £30,000.

If you require further information please get in touch

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Change to Dividend Tax Rates

jsheeky — Tue, 10 Feb 2026 18:13:50 +0000

With effect from the 6th April 2026 the income tax rates applicable to dividends increase by 2% ( with the exception of the higher rate applicable to additional rate tax payers which remains at 39.35%). So basic rate tax payers will see an increase from 8.75% to 10.75% and higher rate taxpayers from 33.75% to 35.75%. This will impact director/shareholders who take most of their remuneration from their companies in the form of dividends. It’s advised to review their remuneration strategy to see whether it will be tax efficient to take more as salary ( as opposed to dividends). Individual circumstances will differ.

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Employer NIC’s

jsheeky — Wed, 19 Feb 2025 10:09:17 +0000

From the 6th April 2025 the rate at which an employer must pay secondary national insurance on an employees earnings rises by 1.2% to 15%. The threshold at which secondary national insurance becomes payable also falls to £5,000 from £9,100. This change represents a big increase in employee cost for businesses and because of the reduction in the threshold means a disproportionate cost increase for employers employing staff at lower salaries. The national minimum wage also increases in April which in turn will increase the secondary NI payable. For employers only employing a small number of staff the increase will be offset by the rise in the Employment Allowance from £5,000 to £10,500. A business employing 4 people at the national minimum wage will therefore not be liable to pay employer NIC’s.

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National Insurance Contributions

jsheeky — Wed, 13 Nov 2024 10:35:02 +0000

To qualify for a full state pension you need to have 35 years of National Insurance contributions. You can check your National Insurance record https://www.gov.uk/check-national-insurance-record . If there is likely to be a shortfall you can buy additional years by making Class 3 or in the case of the self employed Class 2 contributions. You can make additional contributions for the previous 6 years, although until April 2025 you can make backdated contributions to the 2006 -07 tax year.

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