Archive for March, 2014

Introduction of £2,000 Employment Allowance (EA) from 6th April 2014

Businesses, Charities and Community Amateur Sports Clubs (CASC) will be able to reduce their Class 1 Employer National Insurance Contributions (NIC’s) by up to £2,000 per year from 6th April 2014, in a bid to reduce the barriers faced by small businesses who wish to grow, by supporting them with the costs of employment. Some 1.25million employers will benefit, with over 90% of these being sme’s, of which some 450,000 sme’s will no longer pay Class 1 Employers NIC’s.  If you have fewer than 10 employees, you can expect to see your Class 1 Employer NIC’s reduced by 80% The…

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Class 1, Class 2, Class 3, Class 4 NIC’s – what’s the difference?

NIC’s stands for National Insurance Contributions. Class 1 employers & employees, % on earnings Class 1A employers, on company cars & benefits in kind Class 1B employers, on Paye Settlement Agreements Class 2 self-employed, flat rate per week Class 3 voluntary, individuals wishing to fill an NIC gap in their contributions Class 3A voluntary, individuals wishing to top up their Additional State Pensions (from Oct 2015) Class 4 self employed, % on profits NIC Credit equivalent to Class 1, granted to individuals whilst not working

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70 Years of Paye!

Paye was introduced at the outbreak of the Second World War due to the financial strain that WWW2 put on the country. Finance being ‘the fourth arm of defence. Anyone earning over £100 was issued a Tax Code, the system added two million tax payers to the system. Personal Tax was 29%, with a 48% supertax for incomes over £20,000. An Excess Profits Tax was introduced for businesses, taxing the extra profits initially at 60% then 100%. 100%! In 1939 tax collected was £400m, in 1944 it was £1,400m! In an extraordinary arrangement a portion of the Supertax and Excess…

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Fines for National Minimum Wage Offenders increased to £20,000 per employee

From 1st February the fine for employers not paying the National Minimum Wage (NMW) was quadrupled from a maximum of £5,000 to £20,000 for each underpaid worker. Offending employers must pay all the total underpayments to the employee, plus a penalty upto 100% of the total underpayments to HMRC. If you’re not sure what the NMW Rates are, you can find them here https://www.gov.uk/national-minimum-wage-rates

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