Latest National Insurance Contributions

8th April 2020 Changes to Employment Allowance

Employment Allowance can be claimed to reduce the amount of Employer National Insurance payable. The 2020/21 tax year has introduced the following changes to Employment Allowance: The allowance has been increased from £3,000 per year to £4,000 per year You can only claim the Employment Allowance if your total Secondary Class 1 National Insurance liability…

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5th March 2020 Employment Allowance Reform

The Employer Allowance was first introduced in April 2014, giving employers a reduction of £2,000 against their Employer’s NIC bill.   This was further increased in value from April 2016 to £3,000 and in addition the scheme was reformed to exclude single-director companies.   It has remained at £3,000 ever since and is claimed via…

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2nd October 2019 Class 2 National Insurance – HMRC’s ongoing issues

July 2015 saw the end of direct debit collection for Class 2 National Insurance. Contributions are now collected through self-assessment and, despite there being 4 years since the change in the way payments are made, HMRC are still having teething problems. The issues arise as HMRC are running two computer systems side by side: national…

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10th September 2019 Employer allowance – is it worth the hassle?

The £3000.00 employer allowance ceases at the end of the current tax year. From April 2020 employers will have to re-apply for a di minimis state aid based allowance.   A new HMRC checklist will have to completed to declare the following;   NIC contributions in the previous tax year were beneath £100,000; Confirmation that…

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19th October 2018 Increasing publicity over IR35

In the run up to the Autumn Budget, where it is widely speculated the Government will clamp down on IR35 in the private sector, barely a week goes by without another IR35 case being in the news. Employment tribunal claims are increasingly being launched by those caught by the IR35 reforms of the public sector.…

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28th January 2017 State Pension Entitlement

Voluntary Payment of Class 2 NIC by Self-Employed: Protect your state pension ? Self-employed individuals and Partners in trading Partnerships now pay class 2 national insurance contributions annually on 31st January following the end of the tax year through their Self-Assessment Return. Prior to 5th April 2015 those on low incomes had to pay Class…

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24th January 2016 Tax Efficient Remuneration

Examining whether it is best to run the business as a limited company or otherwise (sole trader, partnership or LLP), If operated as a limited company: Looking at the combined business and personal tax ‘picture’ and optimising the mix of retained profits, salary, bonus and dividends (for the business owner and, where relevant, immediate family…

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