The new regional National Insurance Contributions holiday came into effect on 6 September 2010. New businesses set up outside London, the South East and East of England are now eligible for a NIC holiday of up to £5,000 for each new employee they take on in the first year of their business. The scheme will…
We are often asked to comment on the state benefits you will or wont be able to claim if you are self-employed and pay the basic Class 2, and the earnings related Class 4 contributions. Class 2 contributions will qualify you for most of the benefits that an employed person can claim. (Employed persons pay…
A guide to help you determine if NI numbers and VAT numbers are valid. Certain PAYE returns (P35, P11D) will be rejected by HMR&C if a National Insurance number (NINO) is incorrectly displayed. Valid numbers always follow the same format, two letters, followed by six numbers, followed by a single letter. i.e. AB123456D. The following…
A loan itself is not remuneration for National Insurance purposes. Consequently no Class 1 contributions are due on the granting of a loan, or on the cash equivalent of a low interest or interest free loan. Class 1a contributions may become due if the loan is waived, written off, or if the employee/director does not…
