NHS to pay doctors tax bills to avoid winter staffing crisis

NHS to pay doctors tax bills to avoid winter staffing crisis

The NHS have taken action to avoid winter treatment delays by deciding to cover all senior doctors tax bills. Senior doctors and consultants are refusing to work overtime as they are worried it could prompt a large pension tax charge.

The reason for this is because if NHS staff earn more than £110,000 per annum, they could pay tax rates of more than 90% of their pay which includes their pension contribution. This is why many are refusing extra work because if they earn a penny over the tax threshold, they could be faced with a tax bill worth thousands of pounds.

Therefore, senior NHS staff have been cutting back on their hours which is leading to understaffed hospitals. This is the reason why the NHS has agreed to cover all doctors tax bills to avoid a staffing crisis. How in practice this will be achieved is expected to be complex.

These changes were made in 2016, the main reason why this was brought in was to limit tax relief higher earners can claim on their pension savings. This means that some senior NHS staff have received tax rates of more than 100%, which is leading to staff refusing shifts as they could ending earning less money. But because of the increased demand the NHS cannot to afford to have staff refusing overtime over the winter months which is the busiest time of the year.

How can we help

At Hawsons we have a dedicated team of healthcare accountants at our offices in Sheffield, Doncaster, and Northampton. We pride ourselves on the in-depth knowledge and experience our team have developed in a number of specialist areas, across the healthcare sector, including GPs, care homes and pharmacies.

If you would like to book your free initial meeting with us click here.

If you would like to find out more about our healthcare accountants click here.

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Scott Sanderson

Partner, Sheffield

0114 266 7141
UK Retail sales decrease despite going into Christmas

UK Retail sales decrease despite going into Christmas

UK retailers have been hit by a surprise 0.1% decrease in sales in October despite it traditionally signaling the start of Christmas period spending. City analysts had predicted a month-on-month increase because of large discounting by retailers to entice shoppers in.  The statistics show that this was the worst monthly sales value since April 2018.

The data shows that consumers were hesitant to spend leading up to the proposed October Brexit deadline with further reasons behind the decrease being the recent decrease in employment and wage growth which is steering people away from spending money on higher value items.

Capital Economics thought that clothing sales would increase in October due to the cold and wet weather, but in fact they decreased by 1% compared to September.

Sales fell in all retail sectors except food stores. Thomas Pugh an economist for the consultancy Capital Economics said: “In fact, the only bright spots were a 2% increase in department store sales volumes, which may have been helped by an early start to Christmas discounting. A 1.5% increase in fuel sales also helped increase the monthly figures. Excluding fuel, retail sales fell by an even sharper 0.3% month on month.”

 

How can we help

At Hawsons we have a dedicated team of retail and wholesale accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by the retail, wholesale and e-commerce sector means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.

If you would like to book your free initial meeting with us click here.

If you would like to find out more information about our retail and wholesale accountancy services click here.

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You can find all of our latest retail sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

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Pete Wilmer

Pete Wilmer

Corporate Finance Partner

0114 266 7141
Manufacturing orders increase after no deal brexit avoided

Manufacturing orders increase after no deal brexit avoided

Manufacturing orders increase after no-deal brexit avoided

A survey conducted by the Confederations of British Industry (CBI) shows that there has been an increase in orders for British manufacturers during November, although this was against a backdrop of near decade lows. It is believed that the avoidance of a no-deal Brexit is one of the main reasons for such an increase. The level of orders in October was the worst in nine years.

The CBI have said that they think manufacturing output will be flat in the next three months as the new Brexit deadline of January 31 set by the European Union begins to move closer.

Anna Leach, CBI’s deputy chief economist commented: “While the thick fog of uncertainty from a no-deal Brexit has lifted somewhat, the manufacturing sector remains under pressure from weak global trade and a subdued domestic economy.”

How can we help

At Hawsons we have a dedicated team of manufacturing accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by the manufacturing and engineering businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.

If you would like to book your first free initial meeting with us click here.

If you would like to find out more information about our manufacturing services click here.

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If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

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Chris Hill

Senior Partner, Sheffield

0114 266 7141
Self assessment deadline is approaching

Self assessment deadline is approaching

The deadline for submitting your 2018/19 self-assessment return is 31 January 2020.

The deadline applies to taxpayers who need to complete a tax return and make direct payments to HMRC in respect of their income tax, Classes 2 and 4 National Insurance Contributions (NIC), capital gains tax and High-Income Child Benefit Charge liabilities.

There is a penalty of £100 if a taxpayer’s return is not submitted on time, even if there is no tax due or the return shows that they are due a tax refund. But this rises to £900 after three months with extra daily penalties £10.

The balance of any outstanding income tax, Classes 2 and 4 NIC, capital gains tax and High-Income Child Benefit Charge for the year ended 5th April 2019 is also due for payment by 31 January 2020. Where the payment is made late interest will be charged.

The first payment on account for 2019/20 in respect of income tax and any Class 4 NIC or High-Income Child Benefit Charge is also due for payment by 31st January 2020.

HMRC revealed that more than 2,600 taxpayers filed their return on Christmas Day. If you would like help with your return or agreeing your tax liability please contact us.

For more information on this visit: GOV.UK self-assessment

How can we help

At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton, we have over 165 years of expertise in accountancy. Our tax team will be able to help you with any tax query you may have.

If you would like to book your free initial meeting with us click here.

if you would like to find out more information about Hawsons visit our website here

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Changes to Principal Private Residence (PPR)

Changes to Principal Private Residence (PPR)

When an individual dispose of a property that is their only or main residence under PPR rules usually an exemption on their capital gains tax applies. The exemption applies if the relevant conditions are met throughout the period of ownership. This relief is supplemented by ancillary reliefs that aim to deal with related situations.

What are the proposed changes?

The Government has previously announced and issued draft legislated to reform two of the ancillary reliefs to better target PPR at owner-occupiers. The reliefs which are being amended are:

Where a person moves out of a property but does not immediately dispose of the property, then PPR continues to apply in full for a period.  This is very useful when a property may be difficult to sell. This final period exemption will be reduced from 18 months to nine months.  Although the special rules that give those with a disability, and those in care, an exemption of 36 months will not change.  If a property is held beyond the 9-month period it does not mean that PPR is lost entirely rather the relief will start to reduce according to the length of time after the 9 months compared to the whole period of ownership.

Lettings relief, which has been a valuable relief which gives up to £40,000 of additional relief where a property which was previously a PPR is then let out, will be reformed so that it only applies where an owner is in shared occupancy with a tenant.  This is relatively unlikely so this change may increase tax liabilities on a sale of a dwelling by up to £11,200, or £22,400 for a couple.

These changes are intended to take effect from 6 April 2020, but the legislation is not yet enacted and so is subject to change.

More from our property experts

You can find all of our latest property and construction sector news here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

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Stephen Charles

Stephen Charles

Tax Partner, Sheffield

0114 266 7141