Company owners fret about saving tax when they should probably pay more attention to national insurance (NI), says Tax Tips & Advice. One mistake people make when setting up a firm is to pay for business expenses from their salary, assuming – correctly – that they can claim a corresponding corporation tax deduction and an income tax deduction for the expenses via their tax return. But “there’s no means for the directors/employees of a company to claim a deduction for business expenses once NI has been collected from salary payment”. The cost “can be horrendous”.
Say two directors incur expenses of £2,000 a month, which they meet out of their salary. The employers’ NI on £2,000 is £276 (13.8%). As the directors’ pay exceeds the NI upper limit, they lose £40 (2%). This amounts to an “irrecoverable NI cost” of £632. In a year, that’s more than £7,500. To avoid this, the directors should submit an expenses claim to the company and the company should reimburse that exact amount. Even better, the company can
One common misconception is that factoring companies buy old invoices. This is actually not true. Factoring companies by slow paying invoices from credit worthy customers, which helps your cash flow. Factoring companies don’t buy old invoices.
The Southwest Airlines Rapid Rewards® Plus Credit Card is the latest airline credit card from Chase to get a makeover and, as was the case with the United MileagePlus Explorer card, the new Rapid Rewards Plus card looks to be a modest, though nice improvement from its predecessor. The key benefit is a 25,000 bonus point award earned once a single purchase is made with the card. These points are worth a little over $400 when used for Wanna Get Away fares. Thus, depending on flight costs, could cover more than one roundtrip ticket.
Builders and UK landlords welcome the Government’s proposed changes to planning laws.