13 Mar
How to avoid paying NI – Tax Year 19-20
Fiscal Year 19/20 – Avoid paying National Insurance
Selecting the optimal salary is a key question many small owners managed businesses normally ask. In order to retain state benefits, you will want to Pay yourself above LEL, which is £ 118 per week. Class 1 NI becomes payable for Employer and Employee if pay exceeds £ 166 per week, this means you will start paying national insurance only above this amount, based on these numbers the optimal amount that an employee or a director needs to pay himself in order to retain access to certain state benefits but pay no NI is between £ 118 to £ 166 per week, or between £ 6,136 and £ 8,632 per year.
Using the £ 3000 NIC allowance in 2019/20
The allowance is not available for companies where the director is the only employee and the sole director of the company.
RTI Burden for small companies
Small companies can sometimes struggle with the needs of Real-time payroll, an employer which wants to reduce its administrative burden can register under the Annual Payroll Scheme for RTI.
Payroll can be a complicated matter, with different tax bands, rules for benefits and auto-enrolment requirements payroll can become complicated and costly if not done properly but can be one of the key methods to save tax and extract efficiently if done properly.
Clear House Accountants are accountants in London and Payroll specialists in London who can help design bespoke services and smart solutions for your payroll and accounting needs.
Anam has a degree in accounting from the Prestigious St John’s University, and works as a senior director in Clear House.
Before working in Clear House, Anam worked in various commercial roles, the last one being the VP Operations for a prestigious business organisation,working on improving the organisation’s operational efficiency, growth and high level client management.
Anam manages clients ranging from software companies to large property developers and managers. Notably, she recently worked with a large property development company building large scale developments in London and the surrounding area.