NIC Implications and the High Income Benefit Charge

The high income benefit charge was introduced on 7 January 2013 to restrict the availability of child benefit to high earners and their partners. Essentially, where one partner earns more than £50,000, HMRC will claw back the child benefit paid. The amount clawed back will be 1% of the benefit paid for every £100 of … Continue reading NIC Implications and the High Income Benefit Charge

Running Your Business as a Company

The question of whether to run a business as a limited company is a major decision. Here we look at some of the key areas to consider. Tax implications Income tax vs corporation tax For limited companies, it is the company and not the director-shareholder that pays tax. The current rate for corporation tax is … Continue reading Running Your Business as a Company

National Insurance Contributions Top Up Scheme

Those people who reach state pension age prior to 6 April 2016 are being offered the chance to make voluntary national insurance contributions to boost their state pension. The contributions are known as class 3A and the scheme through which the contributions will be collected commenced12 October 2015. It is open to people who reach state pension … Continue reading National Insurance Contributions Top Up Scheme

Deadline Dates – April 2015

1 April 2015 Payment of corporation tax liabilities for SMEs account period ended 30 June 2014 where payment is not made by instalments. Reduction in main rate of corporation tax to 20%. Small profits rate is abolished except for ring-fence profits. Change to emission thresholds for business cars (zero rate ends). Application to defer Class … Continue reading Deadline Dates – April 2015

HMRC To Abolish Employer’s National Insurance Contributions For Under 21s

From 6 April 2015 employer's will no longer have to pay class 1 secondary national insurance contributions (NIC) for employees under 21, whose earnings are below the upper secondary threshold. Under the current regime class 1 secondary NICs are due, from the employer, on payments made to employees in excess of the secondary threshold at … Continue reading HMRC To Abolish Employer’s National Insurance Contributions For Under 21s

Employer Beware! National Insurance Contributions On Expenses Can Be Significant

When Employers consider their exposure to national insurance contributions for Directors and employees, they tend to think only of the Employer's contributions due on the salaries paid. However, significant further NIC liabilities can arise in respect of benefits-in-kind. There are two types of potential NIC on benefits provided: Class 1 NIC - payable by both … Continue reading Employer Beware! National Insurance Contributions On Expenses Can Be Significant