National Insurance rate again is the key point affecting many small business owners and self-employed. Key changes are: Class 2 NIC is abolished. It is £3.45 per week flat rate currently for any self-employed operating as a sole trader who makes more than £12,570 in profit annually. This takes effect …
Category: Budget update
National Insurance Contribution (NIC) is the hot topic of this Spring Statement. NIC rates increase, but NIC threshold also increases. NIC rates increase by 1.25% cross the board. NIC changes Current From April 2022 Employee NI- Primary threshold to upper earnings limit (from £12,570 to £50,270) 12% 13.25% Above …
Income tax Personal allowance will increase to £12,500 (current level £11,850) from April 2019, and higher rate threshold will increase to £50,000 (current level £46,350), and they will remain at this level for the 2020-21 tax year. Pension and savings tax Pension lifetime allowance will increase to £1,055,00 from …
There are encouraging messages in the Budget for technology and innovation companies. Specific points are: R&D Expenditure Credit Scheme (RDEC) taxable credit will increase to 12% from 11%. Promise to double the EIS investment limit (currently £1m) for investors on knowledge incentive companies. £2.3bn more government investment on R&D. This …
The change that will affect contractors and other limited company owners is the reduction of dividend allowance from £5,000 to £2,000. So that means an extra £3,000 will be taxed at either: 32.5% rate, this equals to £975 more tax you have to pay. Most contractors’ income level will fall …