News round up
PAYE collection for HICBC
The High Income Child Benefit Charge (HICBC) was introduced in January 2013 as a way to claw back child benefit via the tax system. It has always caused administrative problems for HMRC and taxpaying families, as it dragged many employees into the self-assessment regime simply to pay their HICBC. At long last, the charge can be collected through PAYE without the need for a full tax return. For more information, see https://www.gov.uk/childbenefit-tax-charge/pay-tax-charge-paye
Countdown to 5 April
The end of the tax year may be over three months away, but the time to begin thinking about year-end planning is already here. If you are considering investing in venture capital trusts (VCTs) to gain 30% income tax relief in 2025/26, then you need to act quickly as many offers are already open and experience suggests that the most popular will disappear long before 5 April arrives.
Cap lifted on tuition fees
In England, university tuition fees for the 2025/26 academic year rose for the first time since 2017. However, the £285 rise (to £9,535) will not be the last for another eight years. Fees will rise in line with forecast inflation for the next two academic years by which time fresh legislation would trigger automatic yearly increases in line with inflation. The £10,000+ tuition fee may be only two years away…
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