Year end tax planning with Pension
Pension
Pension contribution is being used more and more as part of tax planning. Tax strategies involving pension can be highly effective in reducing your tax liability and are easy to implement. Higher rate and additional rate taxpayers will both benefit from these strategies, but to varying degrees. If you happen …
Limited company or sole trader?
Self-Employed
Should I set up a limited company or operate as a sole trader? This is one of the first questions that you will encounter when embarking on the journey of becoming an entrepreneur. This article will help you to decide.   Perceived benefits of limited companies There are several benefits …
Relevant points from Autumn Budget
Budget update
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 …
Impact on your net income from the Spring Statement
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 …
What are the impacts of tax code on my net income?
FAQ
At the beginning of each tax year, taxpayers will receive a letter from HMRC telling you the tax code for this tax year.   A few common ones for the current tax year are: 1257L – you will get the standard tax-free allowance, which is £12,570 0T – no tax-free …
How to choose employee incentive schemes to save tax?
Income Tax
Many companies offer Tax Advantaged incentive schemes to employees as part of long-term incentive plan. These include:   Share Incentive Plans (SIP) Save As You Earn (SAYE) Company Share Option Plans (CSOP) Enterprise Management Incentives (EMI)   Share Incentive Plans (SIP) Employees can buy their employer companies’ shares with their …