Missed our SME Tax Web-updates in December? Here is a summary of the month.
Missed our SME Tax Web-updates in December? Here is a summary of the month.
The Chancellor, Jeremy Hunt, has announced that he will present his Spring Budget on Wednesday 6 March 2024. HM Treasury is inviting representations for the budget, from stakeholders.
Season's Greetings
This week, we combine some festive-themed elements with Artificial Intelligence (AI). On the more serious tax front, we take a look at the Scottish and Welsh budgets and have some top tips for various types of taxpayer.
Scottish Deputy First Minister Shona Robison announced the draft Scottish Budget for 2024-25 on 19 December 2023. A new Income Tax Advanced Rate of 45% will be introduced, meaning that, for example, a person with dividend income alongside employment, self-employment or rental income, has up to ten Income Tax rates to consider.
The Welsh Government released their Draft Budget for 2024-25 on 19 December 2023.
The Draft Budget signals the Welsh Government’s intentions for the three devolved Welsh taxes: Welsh Rates of Income Tax (WRIT), Land Transaction Tax and Landfill Disposals Tax.
Income Tax
Proposed for 2024-25:
Income band £ |
|||
Rate |
Tax rate |
2024-25 (proposed) |
2023-24 |
Personal allowance (tax-free band) |
N/A |
£0 - £12,570 |
£0 - £12,570 |
Basic rate |
20% |
£12,570 - £50,270 |
£12,570 - £50,270 |
Higher rate |
40% |
£50,270 - £125,140 |
£50,270 - £125,140 |
Additional rate |
45% |
£125,140+ |
£125,140+ |
Land Transaction Tax (LTT)
See Welsh LTT Rates for current rates.
Landfill Disposal Tax (LDT)
Proposed for 2024-25:
Other announcements and updates
Developing LTT policy
Non-domestic rates
Visitor levy
Devolution of powers
Useful guides on this topic
Wales
This section covers taxes devolved to Wales.
Welsh Income Tax
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax.
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
External links
Written Statement: Draft Budget 2024-25
Documents: Draft Budget 2024 to 2025
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As 2023 draws to a close, so too does the 2022-23 Self Assessment deadline. Our theme this week is ‘last minute tax returns’ and we feature a number of guides to help answer those last minute FAQs including our top tips of things to consider. HMRC has a new Employer Bulletin and has published its responses to its VAT energy-saving materials relief. We have news of further VAT 'nudge letters', and more letters to taxpayers identified by HMRC through the disclosures made in the 'Pandora Papers'.
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