On The Spot Blogs

Sole Traders - Six #Tax Numbers You Must Know

1. 4 Years - If you are in the first 4 years of your business and make a loss, you can use this loss to reduce your tax bill in the previous 3 years, such as from the job you had before you set up your business. You will receive a tax refund.

2. £5,725 - If your profits are lower than £5,725, you don't have to pay the annual £140 Class 2 NI, unless you need a credit towards your state pension. Ask for a repayment for earlier years.

3. £7,755 - If your profits are higher than £7,755, you will pay 9% Class 4 NI. This gets you no state benefits and effectively increases your tax rate from the 20% income tax rate to a total 29% tax rate.

 

Continue reading
  2053 Hits
  0 Comments

Budget 2013

Necessarily a muted Budget, as the Chancellor had little room for manoeuvre, but there were a couple of surprises to keep us interested!

National Insurance £2,000 Credit - from April 2014

Giving a £2,000 credit from April 2014 against employer's national insurance is a welcome initiative which may encourage small businesses to take on some staff.

 

Continue reading
  2046 Hits
  0 Comments

#Tax Myth 5 - You have to pay national insurance to earn a state pension

Employees who earn at least £107 per week or £464 per month for a full tax year will be achieving a credit towards the 30 years they need in order to earn a basic state pension.

At these earnings there is no national insurance to pay by you or your employer. Your employer may be your own company.

Therefore, you aren't paying anything to earn a state pension.

 

Continue reading
  1942 Hits
  0 Comments

Motivating Staff Tax Efficiently

How can I motivate my staff in a tax efficient way?

 

Continue reading
  2056 Hits
  2 Comments