Employment Allowance, To Claim, Or Not To Claim...

[northernladuk]

Of course it is. It's just that there's a question that maybe should come first: "Do you have an accountant that's any good?"

If they say yes can I then say 'Well go bloody ask them then'?

[MrMarkyMark]

Of course it is. It's just that there's a question that maybe should come first: "Do you have an accountant that's any good?"

I can recommend Darren Upton

[Fred Bloggs]

I can recommend Darren Upton

Many did.

[DaveB]

Without wanting to stroke PC's ego (or anything else) I've had the same advice from NW despite the fact that both myself and MrsB are employees of the company and I am the only director. My reading of the legislation is that MyCo. Ltd would qualify for the allowance.

I've queried it with them but have yet to receive a response.

[psychocandy]

Without wanting to stroke PC's ego (or anything else) I've had the same advice from NW despite the fact that both myself and MrsB are employees of the company and I am the only director. My reading of the legislation is that MyCo. Ltd would qualify for the allowance.

I've queried it with them but have yet to receive a response.

DaveB - you can have a stroke if you want to :-)

Be interested what they say to you. To be fair, in the past, NW have been spot on with any advice. I'd expect them to have covered all angles on this - they just don't get things wrong.

Appreciate there are 'grey' areas at times, and NW do seem to frown on their clients taking risks, but usually I find their advice very sensible.

Of course, if there is any risk it depends on how much gain there is. Remind me what the difference is between claiming this and not claiming?

You're saving CT by paying as salary, but then you pay 'some' personal tax don't you?

[DaveB]

DaveB - you can have a stroke if you want to :-)

Be interested what they say to you. To be fair, in the past, NW have been spot on with any advice. I'd expect them to have covered all angles on this - they just don't get things wrong.

Appreciate there are 'grey' areas at times, and NW do seem to frown on their clients taking risks, but usually I find their advice very sensible.

Of course, if there is any risk it depends on how much gain there is. Remind me what the difference is between claiming this and not claiming?

You're saving CT by paying as salary, but then you pay 'some' personal tax don't you?

You pay a little more in personal tax but that is more than offset by savings in Employers NI contributions. We aren't talking large sums, a few hundred pounds saved per employee.

With the changes to the tax thresholds for 2016/17 you would still have more cash in hand personally than last year and the company saves on the Employers NI.

The reason I queried the advice was more because I thought it was wrong for MyCo.'s specific circumstances than because it was going to cost me anything.

If you meet the criteria I don't see that there is any risk involved. It would only be risky if you claimed without meeting the requirements.

[psychocandy]

Calculations - is this right?

2015/16
Salary 10600 so no tax. BUT you're over the NI limit by £2540 so 12% of this = £305. BUT you're saving £508 in CT (assume basic rate).
So £203 to the good.

2016/17
Salary 11000 with no tax (since band has gone up). £2940 over now so 12% of this again is £353 this year. CT saving is £588 (more if you factor in dividend tax).
So £235 if you claim it. Few weeks JSA that is mind! :-)

Am I correct?

[WordIsBond]

If you meet the criteria I don't see that there is any risk involved. It would only be risky if you claimed without meeting the requirements.

Exactly.

[WordIsBond]

Calculations - is this right?

2015/16
Salary 10600 so no tax. BUT you're over the NI limit by £2540 so 12% of this = £305. BUT you're saving £508 in CT (assume basic rate).
So £203 to the good.

2016/17
Salary 11000 with no tax (since band has gone up). £2940 over now so 12% of this again is £353 this year. CT saving is £588 (more if you factor in dividend tax).
So £235 if you claim it. Few weeks JSA that is mind! :-)

Am I correct?

If you pay Mrs PC up to the Personal Allowance, double it.

As to how much JSA it is, I defer to your superior experience.

[northernladuk]

Calculations - is this right?

2015/16
Salary 10600 so no tax. BUT you're over the NI limit by £2540 so 12% of this = £305. BUT you're saving £508 in CT (assume basic rate).
So £203 to the good.

2016/17
Salary 11000 with no tax (since band has gone up). £2940 over now so 12% of this again is £353 this year. CT saving is £588 (more if you factor in dividend tax).
So £235 if you claim it. Few weeks JSA that is mind! :-)

Am I correct?

Why do you attempt to do something right for a change yet still end up making yourself look like a moron?