Many employers have this week received a letter from David Cameron regarding the employment allowance introduced for 2014/15, which gives employers the first £2,000 of employers class 1 NI for free. We brought you news of this 4 weeks ago in March, so maybe Mr Cameron has been reading our blog? A significant number of employers may not believe they are in a position to take advantage of this, especially those where the owner(s) take a minimal salary and the remainder of their income from the company as dividends with little or no other activity through the company payroll. We are pleased to have identified an opportunity for employers in this position to not miss out.
Instead of taking an annual salary of up to £7,956 on which no employer’s or employee’s National Insurance will be due, there is scope to pay a higher level of salary which results in an overall saving.
To be in an eligible position to take advantage of this opportunity a number of factors need to be reviewed including:
– The overall activity on the company payroll
– Other companies in which you may be involved
– Your income from sources other than the company
– The tax position of the company
If you would like us to review your specific circumstances and whether you can take advantage of this tax savings we will undertake this for you, for £50 + VAT. If you are on an annual payment plan, this review is included within your current monthly cost, and we will include free of charge if you sign up to our annual payment plan in April. For more information, please contact Martin Poole.SHARE: