Archive for the ‘National Insurance’ Category

Higher-rate earners hit by national insurance rise

Posted on: December 3rd, 2018 by Leighton Reed No Comments

Individuals set to benefit from an increase to the higher-rate threshold in 2019 will only see half of the tax reduction expected, as a result of a Budget measure not mentioned in the Chancellor’s speech.

In Budget 2018, the Chancellor announced that the higher-rate income tax threshold would increase from £46,350 to £50,000 in 2019/20. (more…)

HMRC consultation documents

Posted on: October 6th, 2016 by Sarah Curzon No Comments

Sarah CurzonA number of consultation documents have recently been released by HM Revenue & Customs (HMRC) – and we are focusing here on those documents with proposed changes likely to affect employers.

Comments are invited regarding these proposals.  A full list of consultations and the detail behind the proposals can be found here.
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Subsistence Payments: an update

Posted on: April 24th, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, MHA Broomfield Alexander

Sarah Curzon, Tax Director, MHA Broomfield Alexander

Employers often ask how much they can pay employees for subsistence while working away from the business premises. Where an employer pays for or reimburses the employee the full costs of travelling on business, including meals, there are usually no tax consequences for the company or the employee as long as the costs is incurred for a bone fide business trip. So if for example several staff travel regularly to see customers and the employer pays their travel costs and whatever they spend on food and drink for themselves, some staff could spend £5 on a sandwich while others spend £20 in a restaurant. In both situations the employer can reimburse them tax and national insurance free.

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Recent HMRC Announcement – £2,000 Employment Allowance

Posted on: March 4th, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, MHA Broomfield Alexander

Sarah Curzon, Tax Director, MHA Broomfield Alexander

From 6 April 2014 most employers can claim up to £2,000 per annum reduction off their employers Class 1 national insurance contributions.  The claim is made as a reduction each and every month from April and is shown on the Employers Payment Summary (EPS).  The employers national insurance can be reduced from April by £2,000; if the whole allowance cannot be used in April the reducing balance is carried forward month by month. The employer’s national insurance can be reduced by £2,000 each and every year.  No unused balance can be carried forward to a new tax year.

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National Insurance update

Posted on: February 19th, 2014 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

There have been a number of recent changes and potential updates to procedures involving National Insurance matters that you may find of interest. A brief summary follows.

National Insurance Contributions (NIC) allowance

This is applicable to private sector businesses, including charities and community amateur sports clubs. It will save these employers up to £2,000 of employer’s Class 1 NICs per year with effect from 6 April 2014. Note that there is only 1 employment allowance per group so organisations affected by this rule will need to determine which will claim. It has been introduced to boost small businesses.

Excluded employers include non charity public authorities, employers of personal or household employees, personal service companies regarding ‘deemed payments’ and business transfer cases.

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