A new tax year is nearly here.
For those who are operating outside as limited companies directors this is often a time when some tax planning would happen between accountant and director eg reviewing salary.
In a brave new world where many are operating under umbrellas -and likely without accountants - I was pondering what, if any, planning can be usefully done. Obvioulsy as individual situations vary some ideas will only work for some.
I have a couple of thoughts as starters for ten:
For those who are operating outside as limited companies directors this is often a time when some tax planning would happen between accountant and director eg reviewing salary.
In a brave new world where many are operating under umbrellas -and likely without accountants - I was pondering what, if any, planning can be usefully done. Obvioulsy as individual situations vary some ideas will only work for some.
I have a couple of thoughts as starters for ten:
- Take lower or no salary sacrifice in the first contract of the year ( you may not end up working all year)
- It seems to me though that due to the way employees NI is charged there may be better and worse ways to set a salary sacrifice level. (I know that there are risks associated with changing a salary sacrifice arrangement and am not proposing this). Assuming your contract rate puts you well above the upper threshold for NI, If you did 2 contracts next year with clients A and B and set salary sacrifice level to very high (NMW allowing) and none respectively, that saves NI vs setting the salary sac to the same amount