National Insurance Archives - Page 5 of 6

Mar 04 2020

New NIC Thresholds

By admin HMRC, Income Tax, National Insurance, Potts & Co Accountancy & Business Advice News

The NIC rates and thresholds have been announced in advance of the Budget on 11 March to allow time for software providers to programme this information into their payroll packages for 2020-21. There is no change to the rates of Class 1 NIC as the Conservative Party pledged not to…

Jun 05 2019

Paying The Right NIC

By admin HMRC, National Insurance, Pensions, Personal Tax, Potts & Co Accountancy & Business Advice News

Your workforce may include people of all ages from school leavers to those past state pension age, with some working part time or holding down two jobs concurrently. The national insurance contributions (NICs) payable differ, so it is important to get the calculations right. Employers' NICs are not due on…

Dec 13 2018

Check Your State Pension Forecast

By admin National Insurance, Pensions, Potts & Co Accountancy & Business Advice News

Do you know how much state pension you will receive when you retire? You can find this figure though your online personal tax account; click on 'view state pension forecast'. People who reach state retirement age after 5 April 2016 need 35 full years of national insurance contributions (NIC) to…

Jun 11 2018

Last Chance To Pay Class 2 NIC

By admin HMRC, National Insurance, Potts & Co Accountancy & Business Advice News

The two classes of national insurance (NIC) payable by the self-employed will be merged into one class from 6 April 2019. The flat rate Class 2 NIC will disappear and all NIC will be payable based on the profits made in the year. However, it is currently Class 2, payable…

Dec 19 2017

NIC For The Self-Employed

By admin HMRC, National Insurance, Potts & Co Accountancy & Business Advice News

For reasons lost in the mists of time, self-employed individuals pay two types of national insurance contributions (NIC): Class 2 and Class 4. Class 2 is charged at £148.20 per year (for 2017-18), and is only payable if your annual profits are £6,025 or more. Class 4 NIC is calculated…

Mar 20 2017

National insurance changes

By admin Budget Update, National Insurance, Potts & Co Accountancy & Business Advice News

The headlines following the Budget were dominated by the proposed 2% rise in the main rate of Class 4 national insurance (NIC) which is paid by the self-employed. This appeared to break a Conservative Party manifesto pledge not to raise the rate of income tax, national insurance or VAT in…

Mar 17 2017

Marginal tax hit for Scots

By admin National Insurance, Personal Tax, Potts & Co Accountancy & Business Advice News

The Scottish Parliament has proposed that the threshold for 40% tax will be held at £43,000 for 2017-18. In the rest of the UK, this 40% threshold will increase to £45,000 as shown in the table below. 2017-18 Scotland Rest of UK Personal allowance tax free 11,500 11,500 20% tax…

Mar 12 2017

Long-term implications of child benefit

By admin Child Benefit, National Insurance, Potts & Co Accountancy & Business Advice News

Child benefit is paid to parents of young children in the UK, if they claim it. Some higher earning parents don't claim the benefit, as they know it will be clawed-back as a tax charge. However, not claiming child benefit can disadvantage both the parent and the child in the…

Dec 11 2016

Topping-Up Your State Pension

By admin National Insurance, Pensions, Potts & Co Accountancy & Business Advice News

To receive the full amount of the new state pension you need to pay national insurance contributions (NIC) for 35 complete tax years. If you were contracted out of the second state pension, or SERPS, for any part for your working life you may receive less pension than you were…

Dec 08 2016

Working For Public Sector Clients

By admin National Insurance, PAYE, Potts & Co Accountancy & Business Advice News

If you contract through an agency to work for a public sector body, from 6 April 2017 the agency will have to decide whether the contract falls within IR35 or not. If it does, the payment to your personal company will be subject to PAYE and NIC and no 5%…

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