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Employer supported childcare, commonly by way of childcare voucher, is for many employers and employees a tax and national insurance efficient perk. We consider the implications of this type of benefit on the employer and employee. This scheme is due to end on the 4th October 2018 so action needs to be taken now to benefit from this.
The workplace nurseries exemption was introduced many years ago. This exempts from tax and NIC the provision to an employee of a place in a nursery at the workplace or in a facility wholly or partly financed and managed by the employer.
Whilst these sorts of arrangements are not that common, the later introduction of a limited tax and NIC exemption for employer-contracted childcare and employer-provided childcare vouchers has been very popular with both employers and employees alike.
Xero arrived from New Zealand a decade ago and has been winning friends ever since. A recent change in leadership looks likely to result in cloud accounting embracing AI and small business finance.
The concept of your accounting software pre-approving you for business finance is an interesting one.
Here we outline the suggested combination of salary and dividends from your limited company to make best use of the tax rates and allowances.
If you are looking at taking alternative combinations of salary and dividends, additional tax and NI will be due.
Tax will be payable on all dividends in excess of £2k so you should ensure you make sufficient provision to pay this additional tax by making regular payments to HMRC throughout the year.
Details of how to make payments with HMRC are listed here