NIC Archives - Page 2 of 5

Sep 06 2023

Deadline Extended For Voluntary NIC Payments

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

HMRC has given taxpayers an extra two years to plug any gaps in their NIC record from April 2006. The deadline for making voluntary contributions has been extended from 5 April 2023, as previously reported, until 5 April 2025. The deadline was first extended to 31 July 2023 and HMRC…

Jun 05 2023

What State Pension Will You Receive?

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

The amount of your state pension is largely determined by how many years of NIC you have completed during your working life. You can check your NIC record in your online personal tax account (www.gov.uk/ personal-tax-account). You normally need 35 full years of NIC to receive the maximum state pension…

Jun 02 2023

Settle The Tax With A PSA

By admin HMRC, National Insurance, Payroll Settlement Agreement (PSA), Personal Tax, Potts & Co Accountancy & Business Advice News

Occasionally you may reward your employees with something special such as a holiday or a hamper. If the value exceeds the tax-free amount permitted under the rules for say long service awards, trivial benefits or staff suggestions it will be taxable. To avoid your employees getting a nasty shock in…

Mar 28 2023

How To Cope With Corporation Tax Rise

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

The Budget confirmed that the main rate of corporation tax will rise from 19% to 25% on 1 April 2023 but the small profits tax rate will stay at 19% where the company's profits do not exceed £50,000. The Chancellor failed to highlight that the effective marginal rate of corporation…

Mar 07 2023

Mind The NIC Gap

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

Do you know whether your national insurance contributions (NIC) record is complete and correct? You can check the NIC record over your entire working life on your online personal tax account (www.gov.uk/personal-tax-account). This will also provide an estimate of the state retirement pension you should expect to receive when you…

Dec 02 2022

Payroll Matters

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

The Chancellor has decided to freeze the Class 1 NIC thresholds and rates for 2023-24 at the amounts that have applied since 6 November 2022 - the date of the latest rate changes. The health and social care levy which was due to take effect from 6 April 2023 will…

Nov 24 2022

Dividend Tax

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

Dividends are taxed at much lower rates than other forms of income and they are not subject to national insurance contributions (NIC). This can make taking income from your own company in the form of dividends far more attractive than paying yourself a bonus. All taxpayers are currently entitled to…

Oct 06 2022

NIC Cut In November

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

The Government has decided to reverse the 1.25 percentage point increases in national insurance contribution (NIC) rates which were introduced from 6 April 2022. The rates of Class 1 NIC are taken back to the lev- els that were in place on 5 April 2022 but only with effect for…

Oct 05 2022

Tax Incentives In Investment Zones

By admin Budget Update, HMRC, National Insurance, Potts & Co Accountancy & Business Advice News, SDLT, Special Tax Relief

The Government wants to designate up to 38 areas across England as investment zones which will benefit from special tax reliefs and relaxed planning laws. The tax reliefs will include: • employers' Class 1 NIC at 0% on earnings of new employees employed in the zone for at least 60%…

Jun 10 2022

Changing NIC In July

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

The rates for national insurance contributions (NIC) increased by 1.25 percentage points for everyone on 6 April 2022. From 6 July the NIC starting threshold will rise to £12,570 per year (£1,048 per month) for employees. This means that some lower-paid employees will have more Class 1 NIC deducted from…

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