Latest news with #NationalInsurance
Fashion Network
14 hours ago
- Business
- Fashion Network
Next powers ahead as UK and international ops boom in heatwave
UK fashion retail giant Next issued a Q2 trading update on Thursday and showed that its seemingly unstoppable progress is continuing. In the 13 weeks to 26 July, Next full-price sales rose 10.5% year on year. As usual, it also showed that earlier guidance was excessively cautious, the firm having predicted 6.5% growth with expectations of sales £49 million lower than it actually achieved. For Next 'full-price sales' include items sold in its Retail division (that is its stores) and Online, plus Next Finance interest income. They exclude Sale events, Clearance, Total Platform commission and sales from subsidiaries. On this basis, it said sales 'over-performed in both the UK and overseas'. But this wasn't just down to its own efforts. The company cited better than expected weather and trading disruption at a major competitor' for the UK success. That major rival was clearly M&S, which suffered huge disruption following the cyberattack that crippled its webstore. Overseas, the International division prospered as its 'digital marketing proved more effective than anticipated, enabling us to increase profitable marketing expenditure'. Looking at the performance in more detail, UK Online sales for the Next brand increased 9% in the second quarter and 6.8% in the first half overall. UK Online sales for its Label operation rose 10.1% in Q2 and 12.6% in H1. The combination of these two meant that overall Online Q2 sales were up 9.5% and H1 sales were up 9.2%. UK Retail sales rose 5.6% in Q2 and 5.4% in H1, showing that its physical stores continued to attract footfall and bringing total UK sales when Online is added in to a 7.8% Q2 rise and a 7.6% H1 increase. Online International sales rose 26.4% in the quarter and 28.1% in the half with total full-price product sales across the UK and abroad rising 11.1% in Q2 and 11.6% in H1. It all means the firm is increasing its guidance for full-price sales in the second half from 3.5% to 4.5%. This adds a further £27 million of full-price sales to its forecast. The increase in sales in Q2, along with that improved guidance for H2, also means it's increasing full-year guidance for profit before tax by £25 million to £1.105 billion. But it expects UK sales including Online and Retail to rise only 1.9% in the second half while International online sales should increase 19.4% (for a full-year total of 23.8%). That means total product sales during the second half should be up 4.8% and will be up 8% for the full year. The extreme caution as far as UK sales are concerned is due to the effects of earlier National Insurance contribution changes continuing to filter through into the economy and denting consumer spending. It's also down to strong comparative numbers in the second half of 2024. And of course, that unexpected boost from the UK heatwave and from the problems at M&S won't impact the second half. Internationally though, it had been originally expecting a second half rise of 13.1% so the latest guidance for a 19.4% jump is a significant change. That's because it believes it can invest more in profitable digital marking than it had originally planned.
Telegraph
16 hours ago
- Business
- Telegraph
The problem with socialism is that you eventually run out of Gary Neville's money
As a footballer Gary Neville was not known for his versatility. He was a one-club man who trundled up and down the right flank like a plough-horse. So it is heartening to see him switching things up politically. This week he became the latest Labour supporter to turn on them over tax. 'I honestly don't believe […] companies and small businesses should be deterred from employing people,' said Neville, who owns several businesses alongside his punditry gigs. 'So, I think the National Insurance rise was one that I feel probably could have been held back.' Leaving to one side the fact that Sky viewers might not mind living without his rabid commentary, there is a delicious schadenfreude in watching Neville, a noisy Labour fan, change tack. Last June, he even proved his commitment by taking Keir Starmer up the Langdale Pikes for a campaign interview, in what must have been the most tedious man-marking job of his life. Until recently Rachel Reeves has been blessed in her enemies. When she and Starmer broke a manifesto promise to whack farmers with inheritance tax, they couldn't have hoped for a better opponent than Jeremy Clarkson. Here was not some sympathetic turnip-tender on the breadline but a celeb who was on the record as saying dodging IHT was a reason he bought a farm. Number 10 must have rejoiced again in March when Alexander Armstrong, arguably the pre-eminent primetime posho, complained about VAT on private school fees. His quip that he was feeling 'extremely poor' did not land well with those who were actually feeling extremely poor. Now, even Labour's fans are rethinking. Neville was not the first. In February, the Iceland boss Richard Walker, who had supported Reeves' Budget, warned that, while it was right to look at 'levelling the playing field on tax', the Government had 'parked its tractor in the wrong place going after hard-working British farmers'. The problem with socialism is that eventually you run out of other people's money. Even Gary Neville's. Lower the voting age? Here's a better solution Full credit to Jeremy Corbyn for waiting until Labour had said they would lower the voting age before announcing his new party. The Government thought letting 16 and 17-year-olds have a go at the ballot box might give them the edge in a few marginals. Instead, they might hand a sizeable bloc to Corbo and his band of plucky dreamers, not to mention the Greens and even Reform. Luckily for Keir Starmer I have a solution. Rather than lowering the voting age, he should introduce a cut-off. Many problems in the UK are, we're told, down to our limitless brigades of pensioners. As they don't have day jobs or Xboxes to occupy them, voting provides a welcome distraction. With gilded pensions and houses they bought for a shilling and sixpence, they vote to preserve their interests. But you have to reapply for your driving licence at 70, so why not your voting licence? A short quiz could determine eligibility: should we keep the triple lock? Should the winter fuel allowance be extended to summer? Is the PM too young? Are the policemen too young? Is the Pope too young? I can foresee objections, so how about a compromise: you have 50 eligible voting years in your life and you can choose when to use them. If you wanted to torch them on idealism at 16, you would be free to, but you wouldn't be able to defend your pension later. Either way, surely this would be the kind of bold move Starmer had in mind when he promised 'action, not words'. At least, that's what he told Gary Neville, on a hillside in Cumbria.
The Independent
19 hours ago
- Business
- The Independent
HMRC issues warning over late tax payments due today
HMRC has issued a warning to anyone who completed a self-assessment tax return earlier this year, as a new deadline looms. A self-assessment tax return must be completed by anyone who is self-employed or who receives income other than from their regular job, such as from a rental income, dividend or a side hustle. That helps to determine how much tax and National Insurance Contributions they must then pay on those earnings. While self-assessments must be completed annually by 31 January, a second mid-year payment must be made on 31 July, which goes towards the next tax year bill. That means payments made this month contribute to the final tax payment needed on your 2024-25 tax bill. Anyone who misses the 31 July deadline will see fines imposed at a high rate of interest – 8.25 per cent on any tax owed – with further penalties possible the longer non-payment continues. A full breakdown of who needs to make this payment and how to do so can be found online here, but HMRC impose penalties on those who miss this month's deadline, with interest accruing on the unpaid amount from 1 August. 'Prompt payment is important - if you continue to delay, the interest keeps adding up, potentially leading to a much larger tax bill,' HMRC told The Independent. Additionally, extra penalties can quickly add up if you leave the tax bill unpaid for longer. While the following apply only if the tax remains unpaid for 30 days or more, they will rapidly mount up: 5 per cent of the unpaid tax at 30 days Another 5 per cent at 6 months And a further 5 per cent at 12 months You do not need to wait until 31 January to pay your bill. You can pay via your HMRC Self Assessment account or by bank transfer, debit card, Direct Debit or the HMRC app. If you're struggling to pay, HMRC says it's best to take action early. You may be able to set up a Time to Pay arrangement online, allowing you to spread payments over a longer period. You can find more details here on what to do if you can't pay your tax bill on time.
Daily Mirror
21 hours ago
- Business
- Daily Mirror
Brits could see grocery bills jump up by '£275' amid inflation forecasts
The British Retail Consortium (BRC) has cautioned about predicted inflation rises The cost of food is set to be six per cent higher by the end of the year compared with the year before, posing a "significant challenge" ahead of Christmas. Retailers have warned about rising costs and potential layoffs if the Chancellor increases taxes in the upcoming budget, with two-thirds of finance directors expecting additional price increases, the British Retail Consortium (BRC) revealed. A worrying 56 per cent of retail finance chiefs – representing more than 9,000 shops – have expressed 'pessimistic' views regarding business outlook for the next year, BRC research indicates. The consortium counts major UK grocers such as Tesco and Sainsbury's among its members. An alarming 85 per cent have admitted to raising prices due to the last budget's hikes in employer's National Insurance and the National Living Wage, while 65 per cent anticipate additional increases on the horizon. With current food inflation figures at four per cent, the BRC has forecasted a jump to six per cent above the previous year's levels by the festive season, warning: "This will pose significant challenges to household budgets, particularly in the run-up to Christmas." Amid soaring prices, 42 per cent of finance directors have put a stop to hiring, and 38 per cent have reduced in-store staff numbers. This trend is reflected in the latest employment figures, with nearly 100,000 fewer retail jobs in the first quarter of 2025 compared to the previous year, as reported by the BRC, reports Glasgow Live. Additionally, more than a third of Chief Financial Officers (38 per cent) have cut back on community investments, and 15 per cent have postponed new store openings. BRC chief executive Helen Dickinson said: "Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. "The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide." Earlier in January, the BRC had forecasted a 4.2 per cent increase in food prices during the second half of the year, as retailers grapple with heightened expenses stemming from the budget. At that time, Ms Dickinson remarked that projections by the trade association and industry leaders indicated there was 'little hope of prices going anywhere but up' as retailers were hit with increased National Insurance (NI), National Living Wage, and new packaging costs. Just last week, market research firm Worldpanel by Numerator, previously known as Kantar, revealed that UK grocery prices had soared at their sharpest rate in 18 months, sparking worry among consumers about the escalating cost of living. Grocery price inflation jumped to 5.2 per cent in the four weeks leading up to July 13, a rise from 4.7 per cent the previous month, hitting the highest point since January 2024. The figures suggest that shoppers could see an average increase of £275 in their annual grocery bills due to the climbing prices. Sainsbury's and Tesco have been contacted for their thoughts. A HM Treasury spokesperson also said: "We are a far cry from the double-digit inflation we saw in the last few years. "But we know that people are still struggling with high bills, which is why we are determined to put more money into people's pockets, and already, we expanded free school meals to over half a million more children, we're rolling out free breakfast clubs in every primary school and we have boosted the national living and minimum wage. "As part of the Plan for Change we are reforming business rates to level the playing field, have capped corporation tax for the duration of parliament and have taken 865,000 small businesses out of paying employer National Insurance through increasing the Employment Allowance." We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice here
The Irish Sun
21 hours ago
- Business
- The Irish Sun
I'm a HENRY – I earn £101k but 5-star lifestyle leaves me with £225 a month & I have to ask my dad to help with bills
YOUNG professional Yvette Turner earns more than £100k a year but says she's 'broke' - because she's part of a growing group of HENRYs (High Earners, Not Rich Yet) who say they're on the breadline. Despite making £4.5k a month through her full-time IT job and various side hustles, the 38-year-old has just £225 spare after paying her bills . 4 Yvette Turner may earn £101k, but her whopping tax bill and big living expenses leave her with £225 each month 4 'I have five-star tastes but need to start living a one-star lifestyle,' she says There could be as many as three million HENRYs - typically professionals in their thirties or forties - in the UK, according to research from YouGov. They have solid, six-figure salaries - but still feel skint due to the UK tax system and the high cost of funding their lifestyles. 'I'm rich on paper, broke in reality' Yvette, who lives in a rented one-bed flat in London, earns a base salary of £85,000 plus a £6,000 bonus from her job as an IT manager. She has also set up a lucrative side hustle, earning £10,000 from building wedding websites and planning weddings. That brings her total annual income to £101,000 - but says that while she is rich on paper, she feels 'broke in reality'. She even occasionally asks her dad for money to help pay her bills. 'I am a HENRY and not afraid to admit it,' Yvonne, 38, from London, said. 'I know people on an average wage will think I'm moaning, I'm not. It is so unfair. The more you earn, the less you can save. 'My dad had to help me pay council tax twice due to my outgoings." In 2008, Yvette graduated in Business and Computer Science at Edinburgh University and the University of Milano. 'When I started earning a base salary of £85k I was thrilled,' she says. 'I felt confident it was the key to me finally being able to save for a deposit for a house. 'Then I saw my payslip and cried.' Her base salary of £85,000 works out at £7,083.33 a month - but that's not what she gets in reality. She pays £1,786 in income tax, £309 in National Insurance , and £433 for her student loan, which leaves her with £4,555 a month. She paid £6,600 in tax alone on the additional income she made from her bonus and side hustles, and £21,432 in tax on earnings from her main job in the 2024/25 tax year. 'I worked hard for that bonus and to build a second income stream, but the tax system punishes me,' she says. 4 Yvette said she's cutting down on her spending to save money and is looking for a third side hustle 'I have five-star tastes but need to start living a one-star lifestyle' After bills, she is left with just £225. Rent for a pokey one-bed flat in Shepherd's Bush costs her £2,400 a month, and council tax is £180. Her energy and water bills combined are £250, while the cost of commuting is £150. She admits she spends a lot on her food bills and subscriptions like Netflix, wedding magazines and Disney Plus, which costs £400, and she budgets £500 on going out and clothes. She also puts £350 into her pension. 'Saving for a flat or house deposit is impossible. I work late, grab yellow label bargains at the supermarket and have to upcycle my old work outfits with charity shop bargains because buying a designer is now out of the question," she says. 'If I have one unexpected cost like a dental bill, a hen do or have to use my credit card, it wrecks my whole month. 'The government wants us to hustle, to earn big but as soon as we do, we are hit hard. It's demoralising.' Yvette has decided to start fighting back, and this year did a 'financial reality check' so she could properly start budgeting and work out ways to save money and cut costs. She is now looking for a cheaper flat to rent and has stopped spending so much on expensive dinners and new clothes. With these savings, she aims to put away around £400 a month into an ISA and an emergency fund. She still goes out and still books holidays - but only if she is flying with the cheapest airlines and she can get the cheapest holiday deals. 'I have realised I have five-star tastes but need to start living a one-star lifestyle,' she says. Yvette's monthly pay slip and bills Salary before tax: £7,083 Salary after tax: £4,555. The following is deducted from her pay: Income tax: £1,786 National Insurance: £309 Student loan: £433 Bills that she pays: Rent: £2,400 Council Tax: £180 Energy and water: £250 Travel: £150 Food and subscriptions: £400 Going out and clothes: £500 Private pension: £350 What's left over: £225 'People think I moan about being poor for attention' 4 Yvette wants to take on a third side hustle to boost her income, and she's considering moving to a cheaper flat to save more money Predictably, Yvette has has had pushback from friends who earn substantially less than her and can't understand why she's struggling. 'Some tell me to stop complaining because they earn £30 or £40k," she says. 'They reckon I moan to get attention. I'm not doing that. They would do the same thing if they were grafting like me and never having proper time off. "I know people will troll me, but please don't. We're all under attack from the high cost of living. 'My dad was an electrician, and mum was a part-time teaching assistant. They didn't earn big salaries and wanted me to make the most of my university degree and career. 'They're as shocked as I am.' Now, Yvette is looking for a THIRD side-hustle, despite the fact it will push her into a higher tax bracket. Under current tax rules, most people get a personal allowance - which is the amount you can earn tax-free - of £12,570. After that, you start paying income tax. You pay 20% on income between £12,571 to £50,270, and 40% of the chunk between £50,271 to £125,140. Anything earned above £125,140 is taxed at 45%. On top of that, higher earners start to lose their personal allowance once they earn over £100k. This personal allowance drops by £1 for every £2 earned between £100,000 and £125,140. That means your personal allowance is completely lost when your income hits £125,140, so you're effectively paying a 60% tax rate on the chunk of your income above this threshold. Yvette loses £500 of her personal allowance because she earns above £100k. 'I know I'll pay 60% tax from my third side-hustle, but that money will go into my house fund," she says. "Sometimes I feel like giving it all up to become a digital nomad, living in a van and blogging about how earning six figures forced me to quit. "I am a HENRY, and I want to stop feeling broke." Be a Henry and earn more than £100k WANT to be a HENRY and earn over £100k? Here's five easy ways to boost your income. Wealthy people rarely have just one source of income, so start up a side hustle like Yvette did. You could start small, for example by pet-sitting, then save up the money to start your own business. Make sure you declare your earnings to the taxman to avoid a nasty tax bill sting. Wealthy people value their time as they know they can use it to earn money. Every time you want to say yes to something, stop and think about whether it is a good use of your spare time and if you can afford it. Wealthy people invest in the stock market to make their money work harder. The longer you invest for, the more time your money has to grow due to a concept called compound interest. This means that you make money from the interest you earn on your savings. Lots of wealthy people send their children to private school for free - did you know you can too? If you can't afford the fees, you can apply for a means-tested bursary, which could cover the full cost of the school fees. Or if your child is particularly smart or good at music, sport or art, then you may be able to apply for a scholarship, which can save you some money on the fees. You can find a list of schools offering scholarships and grants by visiting Shield your money from the taxman by saving it in an Individual Savings Account (Isa). You can save up to £20,000 into these accounts every year without needing to pay tax. This means that any money you earn from your investments or interest you earn on your savings is tax-free. Wealthy people will hire financial advisors to help them manage their money in the most tax-efficient way. But you don't have to pay big fees for this advice - follow our tips for free instead. A great way of keeping yourself below a higher tax bracket is to pile more money into your pension. That's because the £100,000 threshold is based on something called your 'adjusted net income', which is your income after your pension contributions are taken off. That means you can essentially reduce your salary, and your tax bill, by funnelling your money into your pension instead. Wealthy people who are married will often look into tax allowances to save on their tax nill, such as the marriage tax allowance. This tax relief allows you to boost your personal allowance by applying for marriage tax allowance. This allows your spouse or civil partner (as long as they earn less than £12,570) to hand over £1,260 of their own allowance to their other half, which could save you up to £252 in tax per year. Use government childcare help schemes to save even more. Families can claim up to £2,000 a year from the government through the tax-free childcare system. You can put up to £500 per quarter (every three months) into a tax-free childcare account, and for every £8 you pay in, the government will add £2. The cash can be used to pay your nursery or childminder.
