NIC Archives - Page 3 of 5

Dec 21 2021

Use Your Basic Rate Band

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

Personal tax rates have been held steady for a few years, so it made no difference whether you extracted funds from your company in one tax year or the next. This is no longer the case as on 6 April 2022 the tax payable on dividends and the national insurance…

Nov 25 2021

NIC Rises For All

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

Two areas in the public sector that desperately need funding are the NHS and social care. To pay for these services the Government is raising a new tax: the health and social care (HSC) levy. This will be charged at 1.25% of income or profits for the employed and self-employed…

Nov 21 2021

Increases In Income Tax

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

The tax payable on dividends is set to rise from 7.5% to 8.75% for basic rate taxpayers from 6.4.22. Higher rate taxpayers will pay 33.75% on dividends and additional rate taxpayers must budget for dividend tax of 39.35%. These rates will apply to all dividends taken from all companies where…

Aug 25 2021

Beware of Mini Umbrella Companies

By admin HMRC, Mini Umbrella Company (MUC), National Insurance, Potts & Co Accountancy & Business Advice News, VAT

Umbrella companies employ temporary workers such as contractors on behalf of employment agencies or very large companies. The umbrella company will operate the payroll and makes money by taking a cut of the fees earned by the individual. An umbrella company should provide each worker with an employment contract and…

Aug 07 2021

How to Report Employee Benefits

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

Employee expenses and benefits provided in the year to 5 April 2021 must be reported to HMRC by way of the P11D process by 6 July 2021. Every employee who received benefits or expenses in the year should be included in that process even if they have already left the…

Apr 01 2021

Prepare For Off-Payroll Working

By admin HMRC, IR35, Potts & Co Accountancy & Business Advice News

The IR35 rules have been around for over 20 years but those rules have been redrawn and renamed 'off-payroll working'. In the public sector the engager (the end client) determines whether off-payroll working applies to a contract operated by a personal service company (PSC). This will also be the case…

Mar 29 2021

Ideal Salary For 2021-22

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

As the owner and director of your own company, you decide how much salary to take each year. Paying yourself a small salary can be a good way to maintain your national insurance record to build up state benefit entitlements. In the tax year 2021-22 if you take a salary…

Mar 19 2021

Frozen Bands & Allowances

By admin Budget Update, Capital Gains Tax, HMRC, Income Tax, National Insurance, Personal Tax, Potts & Co Accountancy & Business Advice News

Income tax and national insurance contribution rates have been frozen for 2021-22 and are likely to remain frozen until the end of this Parliament in 2024. By freezing the personal allowances and tax bands at their 2021-22 levels the Chancellor is causing the value of those allowances and bands to…

Dec 12 2020

Christmas Cheer for Employees

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

It has been a grim year, so if your employees have worked all the way through the pandemic they deserve a big ' thank you' which you may choose to mark with a gift or a virtual party. A surprise gift can be provided to each employee tax-free as long…

Jun 22 2020

Off-payroll Working Deferred

By admin Covid-19, HMRC, IR35, National Insurance, PAYE, Personal Service Company (PSC), Potts & Co Accountancy & Business Advice News

Changes to the application of the IR35 rules (known as off-payroll working) were due to come into effect from 6 April 2020 but due to the COVID-19 pandemic, those changes have been deferred until April 2021. The reforms apply where a worker supplies his or her services through a personal…

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