EMPLOYMENT ALLOWANCE FROM 6.4.2014

TAKE ADVANTAGE OF THE £2,000 EMPLOYMENT ALLOWANCE FROM 6.4.2014

The new £2,000 “employment allowance” that provides relief from paying employers NIC on the first £2,000 of contributions starts 6 April 2014. For many employers the benefit of the £2,000 relief will be obtained in month 1 by reducing employers NIC payable, for others it could take several months before credit for the £2,000 is obtained on a cumulative basis.

This new relief appears to be available to most employers, including one man band companies, and leads us to consider a change of profit extraction strategy from 6 April 2014 as it will be more advantageous to increase directors’ salaries to £10,000 instead of the NIC threshold of £7,956.

The extra £2,044 will save £409 (20%) corporation tax (£818 for two directors) whereas the additional employees NIC would be just £245 each.

Please countant us on 01923 803358 or email on info@avinaccountants.com to discuss the full implications for your individual circumstances.

 

 

Avin Accountants |Blueprint Commercial Centre, Imperial Way, Watford, WD24 4JP | + 44(0) 1923 803358 | Email: info@ avinaccountants.com | web: www.avinaccountants.com |

 

By | 2017-04-25T07:00:59+00:00 March 17th, 2014|latest-news|Comments Off on EMPLOYMENT ALLOWANCE FROM 6.4.2014

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