The government has announced:

‘labour market has finished a record breaking year with unemployment down by over 100,000 people and the rate running at 4.8%’.

Other statistics include:

• there continues to be 31.8 million people in work, up by 2.7 million since 2010.
• the number of women in work is at a record high of almost 15 million
• long-term unemployment has fallen to 418,000 and is the lowest it has been since 2008, down 31,000 on the quarter
• youth unemployment is 587,000, a fall of 350,000 since 2010
• 41% of the 420,000 people now receiving Universal Credit are in work.

Secretary of State for Work and Pensions, Damian Green said:

‘This year will be remembered as one when so many records were made – employment has consistently been running at an all-time high with more women, older workers and ethnic minority groups in work than ever before.

Encouragingly, this good news was extended right across the UK.

But there is more to do to help people of all backgrounds and abilities into work, which will remain a priority as we press ahead with our welfare reforms that are ensuring it always pays to be in work.’

Rachel Smith, CBI Principal Labour Market Adviser, said:

‘We see a mixed picture from the labour market over the last three months, with employment levels remaining more or less the same and unemployment seeing a slight drop.’

‘Although wage growth has gone up somewhat, so has inflation, hitting workers’ pay packets in real terms. Boosting productivity in every region and nation of the UK will be essential if firms are to further raise wages sustainably for their employees.’

Internet links: GOV. UK unemployment rate GOV.UK universal credit statistics CBI comment

The government are celebrating the ‘first birthday’ of their award winning Personal Tax Account which recently won Digital Project of the Year at the annual UK IT Industry Awards.

HMRC have announced that in its first year, the Personal Tax Account has attracted more than seven million users and there have been millions of transactions including:

• 1.6 million Income Tax repayments, worth more than £800 million
• 1 million tax credit renewals
• 100,000 people checking or updating their company car details
• 1.6 million people checking their tax estimate
• 2 million people checking their state pensions.

The press release also states that the Personal Tax Account is designed to be one stop shop for all customer interactions with HMRC and taxpayers using it can:

• check their state pension
• complete and return a Self Assessment tax return
• update tax credits circumstances as they change throughout the year to prevent under and overpayments
• claim an Income Tax refund that will be paid straight into their bank account
• check and update their Marriage Allowance.

If you would like advice on your personal tax affairs please contact us.

Internet link: GOV.UK news

A new single tier state pension is to be introduced for those reaching state pension age from 6 April 2016 onwards. According to research by the Department for Work and Pensions (DWP) many pensioners will receive a boost from the new single tier pension following its introduction from 6 April 2016.

Under the ‘flat-rate’ system, new pensioners could receive up to £155.65 per week, compared to the current state pension entitlement of £119.30.

The press release states:

‘The data shows the long-term impact of the new State Pension on people’s pensions, with 75% of people set to gain in the first 15 years.

The move to the new system will provide a boost to the State Pension for many women, with over 3 million women receiving an average of £11 more per week by 2030 as a result of the changes, – helping to address the gender inequalities that have persisted under the old scheme.’

To find out what your pension entitlement is visit www.gov.uk/state-pension-statement

Internet link: GOV.UK news

HMRC have announced that the relaxation which has permitted some employers with no more than nine employees to report their PAYE information for the tax month ‘on or before’ the last payday in the tax month, instead of ‘on or before’ each payday, is to be withdrawn from April 2016.

Guidance on the limited situations where pay details may be provided late can be found at www.gov.uk/running-payroll/fps-after-payday. If you would like any help with payroll matters please contact us.

Internet link: GOV.UK Employer Bulletin 57

For those individuals who have previously submitted ‘paper’ self assessment tax returns the deadline for the 2015/16 return is 31 October 2016. Returns submitted after that date must be submitted electronically or they will incur a minimum penalty of £100. The penalty applies even when there is no tax to pay or the tax is paid on time.

If you would like any help with the completion of your return please do get in touch.

Internet link: GOV.UK Self Assessment