The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000 from 6 April 2018. The cut is likely to have a significant impact on employees and directors of small businesses who receive both salary and dividend payments. Many family-owned companies allocate dividends towards the end of […]
What was your most interesting part of yesterday’s budget? For us it was the clear focus on business and the support to help businesses grow. With new allowances for electric vehicle charging facilities, for building new commercial structures and buildings and an increase in the level of tax relief designed to encourage businesses to spend […]
Many small businesses, whether incorporated or not, pay family members for working for the business. However, as a recent case shows, it is easy to make mistakes which can prove costly.
MORE TAX The tax and NI treatment of termination payments currently depend on whether or not they are classed as earnings. This has often not been clear cut and factors such as whether the payments were provided for contractual reasons have had to be considered. For instance, the treatment of payments in lieu of notice […]
The National Insurance employment allowance can reduce an employer’s National Insurance bill by up to £3,000 – but not all businesses can benefit. Nature of the allowance Where available, the allowance is set against the employer’s secondary Class 1 National Insurance bill. The allowance, set at £3,000, reduces the National Insurance payable by the employer […]