Employers NIC Allowance for last year

[ksareen]

Hi,

Wondering if anyone can help.

Setup: LTD company with Husband as director, Wife as Company Secretary

Husband salary = £13K pa (£1083.33 pm)
Wife's salary = £2.4K pa (£200 pm)

Wife's part time income from another employment = £13.2K pa

For 2018-19 FY, would the husband be eligible for Employer NIC allowance?

Thanks in advance.

[Lance]

LMGTFY

Yes you need to pay some. Your company should pay, not the husband.

Or you could ask your accountant. You do have an accountant don't you? If you don't know the answer to this question then you really need one.

[ksareen]

My question was not about who should pay.

The Employer NIC contribution for husband comes to £631.48 with this set up.
Would that be covered under £3K Employment Allowance?

[SimonMac]

Are you asking if you are entitled to the Employment Allowance to reduce the NI you pay on the husbands wages?

No you would not able to claim the EA as the second wage is below the Secondary Threshold of £157 per week / £680 per month / £8,164 per year so you need to pay your wife some more.

The way I read:

you’re a service company working under ‘IR35 rules’ and your only income is the earnings of the intermediary (such as your personal service company, limited company or partnership)

Also means any contractor who is a PSC also doesn't qualify, although that could also be read that those "Inside IR35" do not qualify but I would double check with your accountant on that













*Disclaimer IANAA and do not use one, choosing instead to run my company's finances myself.

Since 2010 I have only made one cock up which cost me £100 as I forgot to include a leap year in my accounts, but still my advise is more than likely tulip.

I am, however, probably as good or better than as some convicted accountants and random people on the internet with no profile picture just a cartoon caricature

[ksareen]

Are you asking if you are entitled to the Employment Allowance to reduce the NI you pay on the husbands wages?

Yes, correct

No you would not able to claim the EA as the second wage is below the Secondary Threshold of £157 per week / £680

Does the second wage not take into consideration the part-time employment with another company? Because if it does, the threshold gets exceeded (please check numbers in the original post).

[northernladuk]

Sorry to roll it out again but shouldn't your accountant be sorting this out for you?

[SimonMac]

Yes, correct


Does the second wage not take into consideration the part-time employment with another company? Because if it does, the threshold gets exceeded (please check numbers in the original post).

I dunno I'm not an accountant!

The link I provided states:

You can’t claim if:

• you’re the director and the only employee paid above the Secondary Threshold

Does YOUR company (which you are trying to reduce the NI bill for) pay someone other than you above the Secondary threshold?

[northernladuk]

*Disclaimer IANAA and do not use one, choosing instead to run my company's finances myself.

Since 2010 I have only made one cock up which cost me £100 as I forgot to include a leap year in my accounts, but still my advise is more than likely tulip.

I am, however, probably as good or better than as some convicted accountants and random people on the internet with no profile picture just a cartoon caricature that I have to ask to help me out regularly

[SimonMac]

Ok, maybe better isn't the right word, but less tulip?

[northernladuk]

Ok, maybe better isn't the right word, but less tulip?

Or maybe just prettier?