HM Revenue & Customs: Rates and thresholds for employers
HTH
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "With increase in allowances whats best base salary for next year?"
Collapse
-
Originally posted by Notascooby View PostDoes this value change if you take childcare vouchers from your company, not sure if this is deemed salary sacrifice and therefore best figure would be allowance + value of vouchers for the year?
thanks
Leave a comment:
-
Originally posted by Redcar View PostI currently pay £10kpa (badly advised by old accountant).
My new accountant has recommended that I change to the £7605 as quoted by some of your guys.
But I'm worried that this drop could open me up to investigation by HMRC (I'm Ltd and don't use any schemes).
Do you have any thoughts on this or am I just being paranoid?
The amount of tax you will save by paying £7k rather than £10k will cover the cost of PCG+ membership. If you are not already a member I would suggest joining PCG+ and paying the lower salary.
Leave a comment:
-
I currently pay £10kpa (badly advised by old accountant).
My new accountant has recommended that I change to the £7605 as quoted by some of your guys.
But I'm worried that this drop could open me up to investigation by HMRC (I'm Ltd and don't use any schemes).
Do you have any thoughts on this or am I just being paranoid?
Leave a comment:
-
Originally posted by psychocandy View PostWhat about employees NI? Surely this is what pushes it above the threshold making it better to take as div on 20% CT?
As long as you keep below the Primary Threshold there is no Employee NI.
The Secondary Threshold (£144 per week, £624 per month, £7,488 per year) is the point at which Employer NI starts being paid (13.8%).
Don't ask me why the Secondary Threshold is lower than the Primary Threshold, why they didn't decided to call them Employer and Employee Thresholds, or why they even bother having two separate thresholds when they are within a few quid of each other.
I think that's just the beauty of our quintessentially British taxation system
Leave a comment:
-
Originally posted by minstrel View PostYou've got your figures wrong.
Salary is an expense so comes off your top line before Corporation Tax.
The choice is between paying 13.8% Employers NI or 20% CT.
Why TF would you want to opt to pay 20% CT rather than 13.8% NI?
Leave a comment:
-
Originally posted by minstrel View PostYou've got your figures wrong.
Salary is an expense so comes off your top line before Corporation Tax.
The choice is between paying 13.8% Employers NI or 20% CT.
Why TF would you want to opt to pay 20% CT rather than 13.8% NI?
Leave a comment:
-
Originally posted by ClearSky Rachael View PostFor the 2012/13 tax year beginning on 6 April this would be £7,488 (although if you have a tax code of 810L or less you will still pay some tax).
Leave a comment:
-
Originally posted by Contreras View Post£146 per week
£634 per month
£7,605 per year
Source: HM Revenue & Customs: Rates and thresholds for employers
Leave a comment:
-
Originally posted by minstrel View PostIsn't the optimum level £7,592? (Primary threshold £146 * 52)
£634 per month
£7,605 per year
Source: HM Revenue & Customs: Rates and thresholds for employers
Originally posted by minstrel View PostSome people say it's more admin than it's worth to pay a small amount of Employers NI. Personally, I think it's more admin to fill in a nil PAYE return than to BACS a couple of quid to HMRC each quarter!
Leave a comment:
-
Originally posted by kingcook View Post**** that. My limited company pays 20% corp tax (after expenses) anyway. Why TF would i want to opt to pay even more than i have to?
Salary is an expense so comes off your top line before Corporation Tax.
The choice is between paying 13.8% Employers NI or 20% CT.
Why TF would you want to opt to pay 20% CT rather than 13.8% NI?
Leave a comment:
-
Originally posted by Contreras View PostIf you don't mind paying "a little NI" then as per last year (and the recent CUK discussion) you can pay £7605 instead of £7488 for optimum tax*.
Leave a comment:
-
Originally posted by Contreras View PostIf you don't mind paying "a little NI" then as per last year (and the recent CUK discussion) you can pay £7605 instead of £7488 for optimum tax*.
Some people say it's more admin than it's worth to pay a small amount of Employers NI. Personally, I think it's more admin to fill in a nil PAYE return than to BACS a couple of quid to HMRC each quarter!
Leave a comment:
-
Originally posted by psychocandy View PostYep. Thats what I want. Just wondered if the increased personal allowance made it worthwhile to pay a little NI now so as to use the whole allowance.
This shouldn't be nearly as tricky as some would make out if you know how to work a computer to make online payments to HMRC PAYE account, and if you're incapable of that then how the heck are you going to pay yourself. *For a tenner benefit though it has to be viewed as a matter of principle!
All IMHO, IANAA, ...
Originally posted by psychocandy View Post(Or do the dividends still use some of the personal allowance?)
Leave a comment:
-
Originally posted by Nixon Williams View PostOur recommendation is £7,488 per annum or £624 per month.
At this level no NIC payments will be due but you will earn a credit towards the state pension etc.
Assuming you are on a normal tax code (810L for 2012/13) then there will be no tax deducted either.
If you pay at the National Minimum Wage, then this is set at £6.08 per hour (to increase to £6.19 from 01/10/12), so the annual salary would depend on the hours you do.
Alan
Yep. Thats what I want. Just wondered if the increased personal allowance made it worthwhile to pay a little NI now so as to use the whole allowance.
(Or do the dividends still use some of the personal allowance?)
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: