| Tax Efficient Salaries |
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With a new tax year upon us, the optimum salary that an owner-manager should take from their Limited Company has increased. Our advice is that the most tax-efficient amount to take is £5,720 per annum. This is all tax and National Insurance free but still qualifies you for a credit for the state pension. This also means that if you have other taxed income, you may get a tax refund. Advice on your particular tax circumstances is contained in the covering letter or report that accompanies tax returns prepared by A4G. For further advice, please ring your Principal Adviser or client manager on 01474 853856
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| Risk Assessments for Pregnant Employees |
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As you are probably aware, all employers have a duty to undertake a suitable and sufficient assessment of the risk to the health & safety of new or expectant mothers and their babies (whether born or unborn) caused by a pregnancy or a need to breast-feed. “New or expectant mothers” means a pregnant woman, a woman who has given birth in the last 6 months, or a woman who is breast feeding. It also includes women who may have miscarried within the previous 6 months if the miscarriage was over 24 weeks into the pregnancy.
Upon receiving notification of a pregnancy, an employer should not delay in undertaking a specific risk assessment so that any significant risks to unborn babies and expectant mothers can be identified at an early stage. Failure to carry out a risk assessment may well constitute an act of Sex Discrimination against a new or expectant mother which, if proved, could lead to an award of unlimited compensation.
Once an assessment has taken place, the employer has to take reasonable action to alter working conditions or hours to avoid any risks identified in the assessment, and a copy of the written assessment should be made available to the employee. For further information, or to commission a Risk Assessment for New or Expectant Mothers, contact Robin Nye at Barncourt HR by email to robin.nye@barncourt.org.uk
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| Self Employment Contracts Warning |
It came to my attention recently that an Essex contractor (not one of our clients thankfully) was facing an £800,000 fine after inspectors from HM Revenue and Customs had ruled that its self–employment contracts were “not worth the paper they were written on”.
The firm employed 100 people but all were engaged on a self-employed basis using self employment contracts. HM Revenue and Customs ruled the entire workforce should have been classed as employees and has hit the company with a £600,000 bill for unpaid National Insurance contributions plus £200,000 in fines and interest.
It is clear that this is going to be the first of many cases HM Revenue and Customs will be reviewing soon. If you have any concerns about the status of self-employed workers, please speak to Janice our tax manager by emailing Janice@a4gsolutions.co.uk |
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| Quote of the Week |
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“Making the vision clear sparks people’s passion and productivity”.
JACK WELCH
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