Tax News – March 2015
17th March 2015
A quick round up of some tax news before we get distracted by the budget tomorrow…
Does your spouse earn less than £10,600?
If your spouse earns less than £10,600 and you earn between £10,601 and £42,385 from 6 April 2015 they can transfer £1,060 of their unused personal allowance to you saving up to £212 in tax. To do this you must register with HMRC
Employers £2,000 NIC Allowance
Good news is that the £2,000 employers NIC allowance kicks in again with the start of the new tax year on 6th April 2015. The allowance is claimed via your payroll software. No need to do anything if we look after your payroll as this will be automatically claim for you.
No Employers NIC for under 21’s
Great news here for companies employing young people, from 6th April 2015 there is no employers NIC for employees under 21 who earn less than the upper earning limit (£42,276 p.a.)
Directors Salary increase
If you receive a salary at the minimum level to avoid National Insurance whilst still securing social security beneifits from 6th April you can increase this from £663 per month to £676 per month.
Don’t forget that the tax year ends on 6th April 2015, you should review your dividends and company profits to make sure that you have taken full advantage of your basic rate tax band. Dividends must be declared before 6th April to be included in the year they cannot be back dated.
Have you used up your £15,000 ISA limits for the year? Also consider funding an ISA for children or grandchildren.
As always if you need any advice please get in touch.