Taxqube Chartered Accountants

Key Takeaways from the UK Autumn Budget 2024

Today, Chancellor Rachel Reeves announced a budget with significant tax and spending changes aimed at economic stability and growth. Here’s a quick summary of the highlights:

• Capital Gains Tax Increase: Lower rate increased from 10% to 18% and higher rate from 20% to 24%.

Inheritance Tax Reforms:
• Inheritance tax threshold freeze extended.
• Inherited pensions to be included in inheritance tax.
• Tax relief on agricultural/business assets capped at £1 million.

Business Tax Changes:
• National Insurance contributions for employers to increase by 1.2% from April 2025.
• Expected to raise £25 billion annually, though with potential hiring impacts.

Personal Tax Adjustments:
• Personal tax thresholds will adjust with inflation post-2028, ending the current freeze.
• New NHS Funding: Additional £22.6 billion allocated.

Fuel and Stamp Duty:
• Fuel duty freeze continues, including the five-pence cut.
• Stamp duty on second homes rises by 2%.
• Va**ng Tax: New tax on e-cigarettes, effective from 2026.

These measures reflect a shift toward higher taxes for businesses and high-net-worth individuals, with an emphasis on public service funding and economic stability.

Have a question, you can contact us at www.taxqube.co.uk

🚨 New British ISAs Set to Be Scrapped in the UK 🇬🇧💷

The British government has announced plans to scrap the new British Individual Savings Accounts (ISAs) which were announced by the previous government to boost the UK stock market, signalling a major shift in the nation’s savings landscape. 💸

For years, ISAs have offered tax-free savings opportunities for millions of Brits, helping them grow their money without paying income tax on the interest, dividends, or capital gains.

🔹 Simplification: The government aims to streamline the tax system and avoid further complicating the system by introducing a new product that only invests in British stocks.

🔹 New Alternatives and changes: The government will continue to review the ISA system and will make further announcements in the future.

Have a question? Contact us by visiting www.taxqube.co.uk

💼 Important Notice for UK Investors 💷

With the UK Prime Minister expected to announce changes to capital gains tax, now is the time to review your investment strategy. If you have unrealised gains, you may face higher tax liabilities under the upcoming changes.

By realising these gains before any new tax measures are implemented, you could potentially reduce your tax burden.

We strongly recommend consulting with a financial advisor to explore your options and ensure you are fully prepared for any changes. Stay informed and proactive in your financial planning.

🚨Urgent Scam Alert: Protect Your Business!🚨

Business owners, be on high alert! Scammers are sending out official-looking letters claiming to be from HMRC, asking you to “verify your financial information.” These letters are designed to look legitimate, even using correct HMRC addresses and the letterhead to deceive you.

🔍 How to Spot these Fake letters?

Always check the email address provided in the letter. The domain should be **gov.uk**—any other domain, even if it includes “hmrc,” is a red flag and likely a scam. HMRC will never ask you to verify financial information via email or letter in this manner.

If you receive a suspicious letter, don’t respond —contact us or HMRC directly. Let’s keep your business safe from fraud!

If you’re a high earner, you might be caught in the dreaded 60% tax trap without even realising it. This happens when your income falls between £100,000 and £125,140, where the loss of your personal allowance combined with income tax effectively creates a marginal rate of 60%.

✅ Why does this happen? As your income exceeds £100,000, your personal allowance reduces by £1 for every £2 earned, creating a significant tax burden.
✅ What does it mean for you? For every extra pound you earn in this range, you might be paying 60p in tax—leaving you with less than half of your hard-earned income.
✅ How to avoid it: Strategic financial planning, pension contributions, or charitable donations can help reduce your taxable income and steer clear of the 60% trap.

It’s crucial to be aware of this hidden tax rate and take steps to minimise its impact on your finances.

Have a question? Our details can be found at www.taxqube.co.uk.

Keeping track of invoices and receipts is essential for any business—big or small. These documents are not just proof of purchases or sales; they are the backbone of your financial records, helping you stay compliant, track expenses, and make informed decisions.

As a firm, we work with Xero Accounting Software. Did you know that with Xero, you can manage this process effortlessly? Simply snap a picture of your receipts and upload them directly into Xero. This ensures everything is stored securely in the cloud, easily accessible whenever you need it, and ready for tax time.

✅ Stay organized: Keep all your receipts and invoices in one place.

✅ Be audit-ready: Proper documentation helps you stay compliant.

✅Save time: Quickly upload receipts by taking a picture with Xero.

✅ Access anywhere: Secure cloud storage means your documents are always within reach.

Don’t let disorganised paperwork slow you down—embrace the digital age and keep your business running smoothly!

Is your savings interest subject to UK taxes? 🤯

The UK has a Personal Savings Allowance (PSA) which means you can earn a certain amount of interest tax-free.

✅ Basic rate taxpayers (20%): Can earn up to £1,000 in interest tax-free.

✅ Higher rate taxpayers (40%): Can earn up to £500 tax-free.

✅ Additional rate taxpayers (45%): Pay tax on all savings interest. No tax-free allowance.

If you earn over your allowance, you’ll pay tax at your usual income tax rate. 💰

Have a question? Our contact details can be found on our website www.taxqube.co.uk