It’s nearly that time of year again…

No, not Christmas.  It’s nearly October and time for the minimum wage rates to change.  The rates are due to change on 1 October 2013 to:

£6.31 – the main rate for workers aged 21 and over

£5.03 – 18- 20 year old rate

£3.72 – the 16-17 year old rate for workers above school leaving age but under 18

£2.68 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Inheritance Tax – Misconceptions

This is probably the most misunderstood tax we deal with.  Some common myths are:

   * there is a limit to how much can be gifted by parents to their children each year

   * a gift of money will generate a tax liability

   * inheritance tax planning has to be complicated and costly

We have developed a series of low cost inheritance tax plans for our clients, but the principal advice is “Don’t leave it too late – act now”.

Parents with Higher Incomes must register for Self-Assessment

HMRC are reminding  parents with higher incomes who continued to receive Child Benefit after  January 2013 that they must register for Self Assessment by 5 October 2013 to  avoid any penalties in relation to the High Income Child Benefit Charge.

HMRC have announced that  they will be writing to approximately 2 million higher rate taxpayers over the  next few weeks, including those affected by recent changes to Child Benefit.  The letter reminds them that if their income is over £50,000 and they or their  partner received Child Benefit in 2012/13, they will need to complete a Self  Assessment tax return for the 2012/13 tax year. They must register with HMRC  for Self Assessment if they have not already done so.

According to HMRC, over  390,000 people with higher incomes have already opted out of receiving Child  Benefit.