Small Business Accountancy Advice
...Everything You Need To Grow Your Business
So what is National Insurance and why do we pay and who pays? National Insurance was originally introduced in 1911 as a contributory system of insurance for those who could not work due to illness and unemployment and later retirement pensions and other benefits were also covered. National insurance has evolved further over the next 100 years, but still remains similar to its original roots, and pays for certain benefits and the state pension. Not until you reach the state retirement age will you stop paying National Insurance.
If you operate your own UK limited company you will probably want to use the tax planning strategy of extracting money from your company through a combination of dividends and a low salary to ensure you optimise your tax.
On Wednesday, March 3rd 2021 the Chancellor of the Exchequer delivered the government’s Budget for 2021. The Chancellor announced extensions to current COVID-19 schemes, alongside additional support for individuals and businesses, which included extending the Coronavirus Job Retention Scheme until the end of September 2021, alongside other measures. We have summarised some of the key measures for below, including details about tax rate changes.
We talked about the new “reverse VAT” system for CIS construction work back in 2019. Now we’re getting closer to the revised new date of 1st March 2021 kick-off date, it’s time to make sure all your Domestic Reverse Charge (DRC) ducks are in a row. Here’s what you need to know:
The Brexit transition period ends in January. Here’s how to prepare.