Newsletter Autumn 2015

Employment allowance

Almost all private sector employers can claim the annual employment allowance, worth up to £2,000, to set against employers' NIC in 2015/16. There are exceptions for people who employ helpers in their own homes, such as nannies or gardeners.

The good news is this allowance will increase to £3,000 for 2016/17. The bad news is that very small companies, where the owner is the only employee, won't be able to claim the allowance from 2016/17 onwards.

This may affect the amount you will want to draw from your company as a salary in 2016/17 to minimise the tax and NIC payable. Let's talk about the right salary and dividends for your situation.