National Insurance Contributions (NIC) are assessed on earnings and are, therefore, effectively another form of income tax. With careful planning, it is sometimes possible to minimize this tax cost, although consideration has to be given to the potential loss of state pension and benefits, if insufficient NI contributions are paid.
We at KRA can advise in relation to class 1, class 2, class 3 and class 4 NI contributions. In particular, clients are often interested in:
- The relative NIC costs of Salary vs Dividends,
- Class 2 and 4 NIC for the self employed,
- NIC and share options,
- Class 1a NIC on benefits in kind,
- Saving class 1 NIC by salary sacrifice for employer pension contributions or childcare vouchers,
- Paying class 1 NIC quarterly instead of monthly,
- Outsourcing your class 1 NIC calculations to our payroll service,
- NIC on the speculative development of part of your garden,
Advising HMRC and the Contributions Agency of your income which is liable to National Insurance Contributions is principally achieved by completing the employment supplementary pages of a normal tax return.
Most people consider national insurance contributions as another unwelcome tax. As well as seeking to reduce this cost, we at KRA will prepare all of the necessary paperwork and communicate with HMRC on your behalf, so that you have peace of mind that your tax affairs are dealt with in a timely and professional manner.
How we can help
Whilst some generalizations can be made about business tax advice it is always necessary to tailor any advice to your personal situation therefore if you need Business Tax Advice please contact KRA below so we can arrange a No obligation FREE initial meeting at your premises or our office to carry out a business review.
If you are interested in instructing us we will offer you a FIXED FEE accountancy service with no hourly charges or hidden costs.