Webinars, e-learning, emails and videos on employing people. Emails You can get emails from HMRC on how to become an employer.
E-learning An online course on becoming an employer. Webinars and videos Live webinars last for an hour. Register and log in at least 5 minutes before the start time, for live webinars. Agile Scrum Tool, Issue Tracker, Kanban Task Board, Project Management, Epics Management, Bug Tracking - Yodiz. Support guides » Open payroll » Director’s National Insurance. National Insurance for Normal Employees All employees pay no national insurance on earnings below a minimum threshold (the primary threshold), a higher rate for all their earnings between a lower and an upper threshold (the upper earnings limit), and a reduced rate for earnings above the upper threshold.
You can check our current rates at the HMRC website. For employees who are not directors the national insurance thresholds are divided up evenly over the pay periods (months, weeks or 4 weekly intervals) throughout the year. If an employee received pay in excess of the upper threshold in one pay period, then below the lower threshold in the next pay period, the employee pays less national insurance. Special Rules for Directors To prevent tax avoidance which would occur if all director’s pay in a tax year was put into a single pay period, HMRC apply special rules to directors. The Annual Cumulative Method This method is the one implemented in Clear Books currently. Company Law Club : the company law database. HM Revenue & Customs: SessionEnded. Back to Basics: Directors' NI. The fundamentals of payroll This month we are going to focus on the subject of directors’ National Insurance (NI).
A consultation has been carried out by the Treasury regarding the integration of Pay As You Earn (PAYE) and NI contributions (NICs). This project is looking at the possibility of making changes to the system to iron out some of the anomalies, particularly in NI, to make things more straightforward. A proposal under discussion is changing the way that NI is calculated to an annual earnings period, similar to how directors’ NI is calculated. At the moment, further consultation on the integration of PAYE and NIC has been put on hold until after the summer.
First of all, if you are dealing with a director’s NI then you should obtain a copy of the latest guidance from HM Revenue & Customs (HMRC) on the subject. An employee’s NI is normally calculated on an earnings period, according to the pay frequency, eg monthly. Definition of a director Annual earnings period Common errors. HM Revenue & Customs: SessionEnded.
HM Revenue & Customs: Class1NICs-Session Ended. National Insurance rates and categories. HM Revenue & Customs: PAYE-Session Ended. Tax and tax credit rates and thresholds for 2015-16. TaxAid - help with a tax problem if HMRC can't sort it out.
Is £10,000 now the most tax efficient salary for owner/directors? Remuneration planning pre April 2014 It has been common practice for many small family companies to pay low salaries to the director/ shareholders in order to save national insurance and pay the rest of their required remuneration out in dividends.
The national minimum wage legislation doesn’t apply to company directors. They are classed as office holders for national insurance purposes. However, everyone should still receive a salary that is sufficient to qualify for state benefits. For 2014/15, the lowest salary that would still qualify for state benefits is £7,956. Example One: Company pays director £7,956 salary and £30,000 dividends. Income tax suffered by director is nil as the salary is inside the personal allowance of £10,000 and the dividends (grossed up) plus the salary are within the basic rate band after deducting the personal allowance. Employees and employers national insurance = nil. Cash received by the director = £37,956.
An introduction to income tax, National Insurance and tax credits « TaxAid. Teneric Business Forums UK - Search Forums. DIY Accounting - Business Forum. Is a New EU Tax Law Screwing Over Indie Developers? You may have heard some fuss over the last few days around something called VATMOSS – or VATmess, as it was not-so-affectionately dubbed on Twitter.
Essentially, there’s a new piece of European Union legislation coming into effect on January 1st that changes the tax laws, and it turns out it could have a significant impact on the UK’s indie developers (as well as everybody else who sells digital things online). It involves complying with a lot of new, complicated rules, and after speaking to HMRC (the UK’s tax authority) as well as two different accountants about the implications of these new rules, I don’t think it’s an exaggeration to say it could force some small, independent developers out of business unless they significantly change the way they sell their games online. Here’s what the VAT MOSS legislation is, essentially: up until now, if you sold something online, you paid tax on it at the rate set by your own country.
Okay so illustrating a feature about tax is difficult.