Salary for 2014/15

[TheCyclingProgrammer]

The article I referred to is below:

Every business and charity to receive a £2,000 employment allowance - Employers | UK Budget 2013 | Deloitte UK

Thanks for that - when will we know the full details, once the Finance Bill 2014 is passed?

I expect it's not worth HMRCs time trying to prevent this being available to "personal service companies" - they probably realise they don't collect much NI from them already so wouldn't be worth legal wrangling to try and prevent it. That's my view anyway. And that's before we get into the whole issue of "personal service companies" being a legally meaningless term.

There is this website: http://www.employmentallowance.com which does say "every business".

More info here: https://www.gov.uk/government/news/e...-to-parliament

[The Spartan]

I attempted to put together a spreadsheet but I'm not sure if I've calculated the NI correctly or applied the £2k allowance properly. Please feel free to point out any errors:

https://docs.google.com/spreadsheet/...Xc&usp=sharing

On balance, it does look like taking the full £10k allowance as salary saves about £200 in tax, if I've done my sums correctly.

Good work

[Clare@InTouch]

One thing worth noting is that the Employer Allowance won't apply to a deemed salary calculation under IR35 - you're fine if you pay an actual salary, but not if it's a deemed salary.

As far as I can see there's no other exclusion for a PSC.

[aoxomoxoa]

Blimey, is that a record. IR35 not mentioned until post #13

[Clare@InTouch]

Blimey, is that a record. IR35 not mentioned until post #13

Is IR35 an odd contractors version of Godwin's law?

[TheCyclingProgrammer]

One thing worth noting is that the Employer Allowance won't apply to a deemed salary calculation under IR35 - you're fine if you pay an actual salary, but not if it's a deemed salary.

As far as I can see there's no other exclusion for a PSC.

I work outside IR35 so don't really know much about deemed payments, so thanks for pointing that out.

No tax savings for you dirty tax dodging disguised permies!

[Martin at NixonWilliams]

Thanks for that - when will we know the full details, once the Finance Bill 2014 is passed?

Yes, or in the budget, although I can't see anything coming in for 2014/15 that close to the start of the tax year (the budget is on 19th March). If there was a restriction, I would see this coming in from the 2015/16 year, assuming it is an ongoing incentive and not just for 2014/15.

Interestingly, the page seems to have disappeared from HMRC's site. I have been following the page regularly and towards the end of last year the page stated that more details would be given in the new year..

EDIT: Ignore, it has just been moved, still says the same thing about more information being available in the new year.

And that's before we get into the whole issue of "personal service companies" being a legally meaningless term.

I agree, it would be very difficult to implement a restriction which is why I think it will apply to all companies. I suppose they could restrict it for close companies? we shall see.

[aoxomoxoa]

Is IR35 an odd contractors version of Godwin's law?

I think so, as is using the search facility (usually invoked by you-know-who) !

[TheCyclingProgrammer]

I agree, it would be very difficult to implement a restriction which is why I think it will apply to all companies. I suppose they could restrict it for close companies? we shall see.

That would probably exempt a large proportion of the "small businesses" the measure is supposed to be aimed at helping in the first place.

[DirtyDog]

Is IR35 an odd contractors version of Godwin's law?

What does your accountant say?