Disclaimer - I have asked my accountant (big name IT contractor specialist) and they haven't got a formal position on this yet and will decide sometime in February so I'm asking here in case anyone else has done the calculations.
(just to ward off "ask your accountant" statements).
So - I understand from accountants that they are recommending a lower salary for 16/17 due to termination of the employers NIC incentive. I had read somewhere that this only applies to companies with 1 employee.
Mrs Techjinx has started running the social media accounts for an online toy business from home and getting between £600 and £1100 a month as a sole trader (ie no LTD) for her troubles. Not been worth putting this through my Ltd so far as its below the personal allowance so no tax to pay on the money. She also gets half the dividends as owns half the shares but not currently an employee.
So my question in advance of the accountants coming back on this is, will it be worth adding her as an employee, paying a bit more to the accountants each month to do payroll but then avoiding the NIC reduction? Plus could pay her pension from company, get her a phone etc.
I'm asking in advance of my accountants coming back as it's an opportune moment to change her contract with the toy guys and make it with my Ltd.
Thoughts?
Thanks
(just to ward off "ask your accountant" statements).
So - I understand from accountants that they are recommending a lower salary for 16/17 due to termination of the employers NIC incentive. I had read somewhere that this only applies to companies with 1 employee.
Mrs Techjinx has started running the social media accounts for an online toy business from home and getting between £600 and £1100 a month as a sole trader (ie no LTD) for her troubles. Not been worth putting this through my Ltd so far as its below the personal allowance so no tax to pay on the money. She also gets half the dividends as owns half the shares but not currently an employee.
So my question in advance of the accountants coming back on this is, will it be worth adding her as an employee, paying a bit more to the accountants each month to do payroll but then avoiding the NIC reduction? Plus could pay her pension from company, get her a phone etc.
I'm asking in advance of my accountants coming back as it's an opportune moment to change her contract with the toy guys and make it with my Ltd.
Thoughts?
Thanks
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