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Ni and tax. Worth a read


monkeyman

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If they address national insurance payment differences then they must address the benefits of the system like sick pay, maternity pay, paternity pay to name but a few.

If they change national insurance then every self employed person will start a Limited Company so they can pay themselves minimum wage then dividends.

There are a of of things they need to change if they want things equal. 

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15 minutes ago, ched999uk said:

If they address national insurance payment differences then they must address the benefits of the system like sick pay, maternity pay, paternity pay to name but a few.

If they change national insurance then every self employed person will start a Limited Company so they can pay themselves minimum wage then dividends.

There are a of of things they need to change if they want things equal. 

Limited Companies pay higher corporation tax and dividends over £2k a year are taxable. Any wages over around £8k a year, nor sure on the exact figure, the company has to pay employers NI contributions.

Ltd Companies aren't as beneficial as they were.

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10 minutes ago, Part Timer said:

Limited Companies pay higher corporation tax and dividends over £2k a year are taxable. Any wages over around £8k a year, nor sure on the exact figure, the company has to pay employers NI contributions.

Ltd Companies aren't as beneficial as they were.

Very true, they are closing the Ltd company loopholes as well. 

Corporation tax is 19%, dividend tax above 2K is 7.5%. So even adding those together is probably less than the income tax and national insurance if GOV put it up to same as employed at 13.8% plus income tax.

I would bet, currently, a well structured Ltd Co owner would receive more money per year than the same person working as Self Employed. 

This is where a good accountant earns his fees? 🙂 

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