Tax and NICs

Taking care of the pennies

Paying tax is a necessary obligation, whether you employ a team of staff or simply wish to extract money from your business to fund your chosen lifestyle.

We can help you to keep more of your hard-earned money and minimise your tax bill by choosing the most tax-efficient methods of remuneration that comply with the UK tax system.

Paying yourself

We will help you to consider the best way to extract profits from your company. Whether you opt for a salary, dividends or benefits-in-kind, we’ll recommend a method that will save you money and keep your tax bill down, taking into account employee NICs, employer NICs, and the primary and secondary thresholds.

Strategic savings on National Insurance contributions

National Insurance contributions (NICs) entitle you and your staff to contributory benefits such as the State Pension, Maternity Allowance, and other social security benefits. There are several ways to save money on NICs, including:

• Increasing the amount you contribute to company pension schemes, which can reduce your NICs liability

• Utilising share incentive plans, where shares are bought out of pre-tax and pre-NIC income

• For companies, considering disincorporation and instead operating as a sole trader or partnership to benefit from different NICs rules

• Paying significant one-off bonuses instead of increased salary to reduce employee NICs contributions (note: this won’t work for directors)

• Paying dividends instead of bonuses to owner-directors to minimise NICs

• Although new claims for childcare vouchers ended on 4 October 2018, existing claims submitted before this date remain valid

We provide expert advice to help you and your employees choose the most tax-efficient way to remunerate yourselves while maintaining compliance with NICs regulations and employment allowance thresholds.

Comprehensive payroll services

Let us take the administrative burden of being an employer off your hands. We offer a comprehensive payroll service to clients of all sizes, including owner-directors, contractors, start-ups, and large corporations.

Our payroll services ensure you meet your tax liabilities and reporting requirements for National Insurance and income tax, so you never have to worry about paying your employees and the taxman. We keep you updated on the latest changes to NICs rates, thresholds, and regulations for each tax year and pay period.

With our guidance, you can maintain accurate accounts and ensure timely payment of employer and employee NICs, keeping your business compliant with HMRC requirements.