National Insurance: What are NI and income tax and what do I pay?
Buy Now An error occurred. Buy Now An error occurred. Book Novotel Hotel National Insurance: What are NI and income tax and what do I pay? Banzai Japan Music Video The government has announced an increase in the amount of National Insurance (NI) paid by employers. Before the Budget, the chancellor and prime minister had promised not to increase the main rates of income tax and National Insurance (NI) for working people and these will not change. NI rates paid by workers and the self-employed have already been been cut in 2024, but previous changes to the way tax is calculated mean the amount many people pay overall has risen. Budget 2024: Key points at-a-glance How the Budget will affect you and your money Book Novotel Hotel What is National Insurance and what does it pay for? The government uses National Insurance contributions (NICs) to pay for benefits and to help fund the NHS. It is paid by employees, employers and the self-employed across the UK. Those over the state pension age do not pay it, even if they are working. Eligibility for some benefits, including the state pension, depends on the NICs you make across your working life., external How does National Insurance work?, external Check your National Insurance record Banzai Japan Music Video How much do employers pay in National Insurance? At the moment businesses pay a rate of 13.8% on employees’ earnings above a threshold of £9,100 a year. In the Budget Chancellor Rachel Reeves said this rate would increase to 15% in April 2025, and the threshold would be reduced to £5,000. The employment allowance – which allows companies to reduce their NI liability – will increase from £5,000 to £10,500. In total Reeves said the changes would raise £25bn a year by the end of the period covered by the Budget. Neither employers nor employees pay NI on pension contributions. There had been widespread speculation that the Budget could set out plans for employers to start doing so, but it did not. Would raising employer National Insurance break Labour’s pledge? How much do employees pay in National Insurance? Workers start paying NI when they turn 16 and earn more than £242 a week, or have self-employed profits of more than £12,570 a year. The starting rate for National Insurance for 27 million employees fell twice in 2024: from 12% to 10%, and then again to 8%. The previous Conservative government said that the two cuts were worth about £900 a year for a worker earning £35,000. For the self-employed, Class 4 NI contributions on all earnings between £12,570 and £50,270 fell from 9% to 6%. At the time, the previous government said this was worth £350 to a self-employed person earning £28,200. Self-employed workers also no longer have to pay a separate category of NI called Class 2 contributions. The NI rate on income and profits above £50,270 remains at 2% for all workers. National Insurance rates, external What are the current income tax rates? Income tax is paid on earnings from employment and profits from self-employment during the tax year, which runs from 6 April to 5 April the following year. It is also paid on some benefits, external and pensions, income from renting out property, and returns from savings, external and investments, external above certain limits. The basic rate is 20% and is paid on annual earnings between £12,571 and £50,270. The higher rate is 40%, and is paid on earnings between £50,271 and £125,140. Once you earn more than £100,000, you also start losing the £12,570 tax-free personal allowance. You lose £1 of your personal allowance for every £2 that your income goes above £100,000. Anyone earning more than £125,140 a year no longer has any tax-free personal allowance. The additional rate of income tax of 45% is paid on all earnings above £125,140 a year. These rates apply in England, Wales and Northern Ireland. Some income tax rates are different, external in Scotland, where a new 45% band took effect in April 2024. At the same time the top rate also rose from 47% to 48%. What is happening to NI and income tax thresholds and why do they matter? Despite the NI cuts for workers and the self-employed in 2024, millions will still pay more tax overall because of changes to the tax thresholds. These are the income levels at which people start paying NI or income tax, or have to pay higher rates. These used to rise every year in line with inflation. However, the previous government froze the NI threshold and tax-free personal allowance at £12,570 until 2028. Higher-rate tax will continue to kick in for earnings above £50,270. Freezing the thresholds means that more people start paying tax and NI as their wages increase, and more people pay higher rates. According to the Institute for Fiscal Studies (IFS) think thank, the freeze cancels out the benefits of the NI cuts for some workers. In the 2024-25 tax year, it says an average earner will have a tax cut of about £340 – from the combined tax changes – and people earning between £26,000 and £60,000 will be better off. But by 2027, the average earner would be only £140 better off – and only people earning between £32,000 and £55,000 a year would still benefit. Before the Budget there had been speculation that the chancellor would extend the freeze until 2030 but she said she had decided not to do so. Who pays most in income tax? For most families, income tax is the single biggest tax they pay. But for less well-off households, a greater share of family income goes on taxes on spending, known as indirect taxes. For the poorest fifth of households, VAT is the biggest single tax paid. How do UK taxes compare with other countries like France and Germany? You can look at the amount of tax raised as a proportion of the size of the economy, or GDP. In 2022
Rogue landlord ‘motivated by greed’ jailed
Buy Now An error occurred. Buy Now An error occurred. Book Novotel Hotel Rogue landlord ‘motivated by greed’ jailed Banzai Japan Music Video A landlord who was among a group of property agents who defrauded and misled flat-hunters on an “unprecedented” scale has been jailed for three years and five months. Mohammed Haque, along with three others, was convicted in October of eight counts of fraudulent trading. A fifth defendant was found guilty of two lesser offences. A trading standards investigation found they posted about 18,000 misleading adverts for rooms in east London, hooking in victims who were pressured into paying deposits to move into “horrible” properties. Some ended up trapped in them while others were evicted without notice. Many victims said their experiences had had a severe financial and psychological impact. Book Novotel Hotel Haque, 47, set up various companies operating across Tower Hamlets, including Citiside Properties Ltd and Flintons, based at the same address in Mile End, and had links with several other firms, trading standards found. Haque, his former wife Fatima Begum, 42, Gonzalo Egea, 43, and Razaur Oli, 51, were convicted at Southwark Crown Court of fraudulent trading, while Haque, Nozir Ahmed, 56, and the two companies Barrons London Ltd and Roomshare Ltd were found guilty of the less serious charge of engaging in unfair commercial practice. Ahmed and Roomshare were also convicted of engaging in aggressive commercial practice. Banzai Japan Music Video ‘Tip of the iceberg’ One man told Southwark Crown Court his life was made “hell” by Flintons and he was left feeling suicidal by the firm, while another tenant said he was treated like a “stray dog”. One victim said she was forced to live in a flat ridden with mice; others said they felt “violated” and were left penniless. Tower Hamlets trading standards investigation team leader Sean Rovai said the case was “virtually unprecedented in its size and complexity”, with more than 200 known victims between 2017 and 2021. However, he said that number was likely to be the “tip of the iceberg”. The defendants appeared to target those unfamiliar with the London rental market, such as foreign workers and students, using popular sites such SpareRoom to post misleading pictures of rooms that were not in fact available, the investigation found. Prospective tenants were tricked into parting with large deposits, pressured into taking out tenancies without being able to view properties first, and many became “stuck” in low-quality accommodation that bore no resemblance to adverts. Some were threatened when they tried to move out while others found themselves trapped, without anywhere else to go, investigators found. When tenants chose to leave at the at the end of their contracts, their deposits were not returned to them. “Almost every area of malpractice in this industry that we see was encapsulated in this one case,” Mr Rovai said. “It was all motivated by greed and profit. And there was very little sympathy for any of these victims.” In some cases, the firms evicted tenants with no notice by removing all their possessions and changing the locks while they were out. Tenants were treated “terribly”, Mr Rovai said. ‘I had nowhere to go’ Fashion worker Julius Agyei, who rented a room from Flintons, said he was “devastated” by what happened to him after he moved to London from Manchester. Arriving home to Mile End from a day out at Winter Wonderland in December 2018, he found his key did not work. “Everything was locked,” he said. When a housemate let him in, Julius found all his possessions had been removed from his room. “It was empty, there was literally nothing; I was devastated. All my clothes, shoes, my passport, lots of meaningful items… I never got them back.” Julius spent the night on the street before seeking help at a homeless hostel the following day. “I had nowhere to go… I had nothing so I literally had to start from scratch… it took me a while, it was very challenging.” Julius said in the years that followed, he suffered panic attacks, a breakdown and flashbacks. “I was traumatised by it… it wasn’t just shoes and clothes, it was deeper than that.” Usually, landlords must obtain a court order to evict tenants. But these companies tricked people into signing what are known as licence-to-occupy agreements – usually used for holiday accommodation – which effectively enabled them to throw people out on the street. The firms were “not averse” to getting rid of those who complained, Mr Rovai said. “There was always a queue of people desperate for housing so they can afford to kick them out.” Many victims took out tenancies after being lured in with “bait-and-switch” advertising. The firms used photos of high-quality accommodation that was not actually available, in order to generate interest. Yan Liu was hooked in by one such advert on SpareRoom for a room in a property near the Bow Road in Mile End, when she was studying medicine nearby. “It was pristine and £600 per month.” She went to the Citiside Properties office an hour later but was told the room was no longer available. “I was about to leave but they insisted to show me other properties.” She was then pressured into paying £300 just to view an alternative room. However, the firm did not show her the room and refused to refund her money. She was told the only way to get her money back was to redeem it indirectly by taking out a tenancy agreement. “£300 is is not a small amount of money,” Yan said. “I felt that because I paid that deposit with them, I didn’t have any other choice: if I want to get the money back, I have to rent with them.” The room Yan eventually moved into was more expensive and “much crappier” than the one she saw advertised, she said. It had no heating and a faulty electricity supply, meaning she could not cook. ‘Humiliated and embarrassed’ Israel Kujore went
Landlord licences to stamp out ‘dangerous’ HMOs
Buy Now An error occurred. Buy Now An error occurred. Book Novotel Hotel Landlord licences to stamp out ‘dangerous’ HMOs Banzai Japan Music Video https://www.youtube.com/watch?v=UPElmgQJGBo A council in north London has said it needs to bring back tougher rules to deal with “rogue landlords” of houses of multiple occupancy (HMOs). Brent Council says there is currently a “significant number” of such homes in the borough that are “substandard and potentially dangerous” and which pose a risk to residents. The council plans to restart a licensing scheme which saw 2,500 HMOs licensed and helped the council “improve standards and management practices”. It is now consulting on the plans and hopes to bring them in this autumn. Brent council says HMO licensing makes sure that houses are ‘safe, well-managed, and provide basic facilities for tenants’, and says it gives powers to officers to inspect licensed properties to ensure they meet the required standards. The consultation states: “It is important that the council uses all available tools to improve conditions for tenants in this sector. Licensing is one of the tools and plays a key role in this effort.” Book Novotel Hotel https://www.youtube.com/watch?v=BJsGZL-zb54 A mandatory licence is already needed for HMOs with five or more people from two or more households. The additional rules would cover typically smaller HMOs with three or more people from two or more different households. Licensing imposes specific obligations on the landlord to demonstrate that their property is safe while enabling the council to enforce rules. The licence would cost landlords around £1,040 for the application, processing and inspection of up to five habitable rooms – and a further £25 per additional room. Banzai Japan Music Video https://www.youtube.com/watch?v=3syHHGzkF_s Opinions wanted Councillor Fleur Donnelly-Jackson, said: “Over the past 20 years, the number of privately rented homes in Brent has grown, and now makes up almost half of all homes in the borough. “We want to make sure these homes are safe and good quality for tenants.” She added: “While we have seen significant improvements, we believe that another additional HMO licensing scheme is necessary to maintain and improve the management of HMOs in Brent. “We want to encourage residents to give their opinions on these new proposals for HMOs.” Book Novotel Hotel https://www.youtube.com/watch?v=RR8YYeb4PMk Banzai Japan Social Media Fumi Fujisaki Idol Riko Ueno Idol Rino Ibusuki Idol Yunagi Nino Idol Shiori Fujisaki Idol Kana Ichinose Idol Hoshino Arice Idol Sasa Sasagawa Idol Kosaka Yuu Idol Tsukumo Aira Idol Maika Ando Idol Yuuki Mochimaru Idol