Salaries are deductible costs
Salaries are legitimate business expenses and as such can be
deducted in calculating profits. If you operate through a company,
you can legitimately pay yourself a salary.
Registering as an employer enables you to pay your employees
up to £5,435 per year without having to make any deductions
for tax or national insurance.
Be part of the system for NI
Employees who earn more than £90 per week (£4,680
per year) are recognised as contributing to the system of national
insurance. This requires the employer to be registered for PAYE.
This is the case even if the salary paid is less than £5,435
- the point at which national insurance starts to be levied.
Get £75 from the taxman
All employers will be required to file their annual returns online
from 2010. But this year, any employer with less than 50 employees
will be given an incentive payment of £75 if they file their
annual return online.
OUR SPECIAL OFFER
During March, Small Biz Accounts
will register your business as an employer and file your 2008/9
year-end return for a special price of £170 +VAT (£195.50
including VAT).
This advice is of a general nature and may not be applicable
to your situation. Please contact us on 0845 652 5220 about your
specific circumstances or use our contact
form.
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