We keep you updated
We provide our clients with regular updates on changes in taxation regulation, news from the world of accounting and, of course, information about the latest developments at F1 Accounting.
RTI - Real Time Information for PAYE
HMRC has introduced a new way of reporting PAYE - called Real Time Information, or RTI.
From April 2013, employers are legally required to report PAYE in real time. This means that information about all PAYE payments needs to be submitted to HMRC online each time a payment is made as part of the payroll process, rather than at the end of the year as has previously been the case.
If you would like any help with your payroll please feel free to contact us, our payroll staff are fully trained on the new system and are happy to help.
Limit at which people start paying tax to be raised from the current £12,500 to £12,750 from April 2021.
Higher Rate Income Tax
The higher rate threshold of 40% will be on earnings between £37,701 - £150,000 from April 2021 to March 2022 with earnings above £150,000 attracting 45%.
Currently the main rate is 19%. This is to increase from April 2023 for businesses with profits above £50,000 incrementally, going up to 25% for profits over £250,000.
Approximately 450,000 small firms will pay no Employer National Insurance. The Employment allowance for those businesses that qualify will remain at £4k per year.