National Insurance

National Insurance

Beneficial loans to employees

May 2nd 2017

In many cases, making loans to your employees or their relatives can create an obligation to report a beneficial loan to HMRC. The deemed benefit would be a taxable benefit in kind for the relevant employee, and would increase the employer’s Class 1A NIC bill at the end of the tax year.

Class 4 NICs

April 7th 2017

The Chancellor announced two increases in Class 4 NI contributions for the self-employed in his budget and in the following week withdrew the increases for the term of the current parliament.

Abolition of Class 2 National Insurance contributions

February 1st 2017

Class 2 National Insurance contributions are to be abolished from 6 April 2018. Class 4 contributions are to be reformed from the same date to provide the mechanism by which the self-employed earn entitlement to the state pension and certain contributory benefits. The reform has a number of implications for the self-employed.

Under and over payment letters from HMRC

August 31st 2016

A number of our clients have recently received notices from HMRC about apparent under or over payments of PAYE and NIC. In many cases these notices have subsequently been found to be incorrect.