National Insurance Contributions
Both the employed, and the self-employed who pay Class 4 contributions, will be able to earn up to £9,500 in 2020/21 before NICs announced the Budget of 2020.
If you employer a veteran, then a new National insurance “holiday” is being introduced for the first year of civilian employment.
National Insurance rates for 2020/21 are remaining the same.
Employed 2019/20 Employed 2020/21
How much you earn Class 1 rate How much you earn Class 1 rate
Less than £8,632 0% Less than £9,500 0%
£8,632 – £50,000 12% £9,500 – £50,000 12%
More than £50,000 2% More than £50,000 2%
Self Employed 2019/20 Self Employed 2020/21
How much you earn Class 2 & 4 rates How much you earn Class 2 & 4 rates
Less than £6,365 0% Less than £6,475 0%
£6,365 – £8,632 £3 per wk (Class 2) £6,475 – £9,500 £3.05 per wk
£8,632 – £50,000 9% + £3 per wk £9,500 – £50,000 9% + £3.05 per wk
More than £50,000 2% + £3 per wk More than £50,000 2% + £3.05 per wk
Employment Allowance Scheme
The Employment Allowance scheme (introduced in 2014) was to allow certain businesses who employ staff to reduce their National Insurance Class 1 bill by £3,000 and claimed via payroll.
From 6 April 2020 the Employers Allowance will increase to £4,000 but will only be available to smaller businesses with an employer’s NI bill of £100,000 or less in the previous tax year.
If your business is part of a group of companies or has related companies under the same control, only one company in the group can claim the allowance.
Our Services
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Payroll and Auto Enrolment
Employing people can cause stress for a business owner for many reasons and one of these is payroll. Our teams expect that they will be paid on time and with the correct level of deductions made. We can provide a full payroll service for your business including auto-enrolment, keeping you compliant with your many legal responsibilities.
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Other Accounting Services
We offer a full range of supplementary accounting services and complimentary business services that will help your business thrive and prosper. All our services and come with a friendly approach, which is of course, free of charge!
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When it comes to supporting small enterprises, helping them grow whilst avoiding regulatory and commercial pitfalls, we have a weath of experience, expertise and a kettle - a very good kettle. If you think we could be a good fit, get in touch to see how we can add value to your business.
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