With the government introducing the Employment Allowance for businesses which gives employers a £2000 reduction in there NI bill which would (if my sums are correct) raise the threshold by £38 to £190 per week before paying any Employers NI.
Is any Ltd drivers here using this scheme,? Would it be of any benefit to one man Ltd company’s.
Regards,
Jeff. 
YorkshireJeff:
With the government introducing the Employment Allowance for businesses which gives employers a £2000 reduction in there NI bill which would (if my sums are correct) raise the threshold by £38 to £190 per week before paying any Employers NI.
Employment Allowance: What you'll get - GOV.UK
Is any Ltd drivers here using this scheme,? Would it be of any benefit to one man Ltd company’s.Regards,
Jeff.
Yes I use it. It effectively means my limited company now pays no employers NI at all.
Another benefit of being limited rather than PAYE.
The allowance does work out as just over £38 per week and it is available for businesses that qualify whether they are Ltd or not. The need is to be an employer and registered with HMRC as an employer and pay the employee(s) PAYE.
The situation for a lorry driver with his own Ltd Company and no employees other than himself are not as straight forward as there may be some doubt as to whether they are eligible for the scheme.
If you check on the HMRC website a service company with only deemed payments of employment income may not qualify and this comes back, as always, to IR35.
If a driver feels that he qualifies and if he is an employee of his own limited company then he could pay himself up to about £430 per week PAYE and escape the employers NI but he would still have to pay employees NI (about £33 per week)
In addition to the EEs NI of £33 if HMRC did rule that the allowance was not justified they could ask for the money to be repaid. So it may be better to reduce your NI by low wage/ high dividend and don’t pay any employees or employers NI in the first place.
shake:
The allowance does work out as just over £38 per week and it is available for businesses that qualify whether they are Ltd or not. The need is to be an employer and registered with HMRC as an employer and pay the employee(s) PAYE.The situation for a lorry driver with his own Ltd Company and no employees other than himself are not as straight forward as there may be some doubt as to whether they are eligible for the scheme.
If you check on the HMRC website a service company with only deemed payments of employment income may not qualify and this comes back, as always, to IR35.
If a driver feels that he qualifies and if he is an employee of his own limited company then he could pay himself up to about £430 per week PAYE and escape the employers NI but he would still have to pay employees NI (about £33 per week)
In addition to the EEs NI of £33 if HMRC did rule that the allowance was not justified they could ask for the money to be repaid. So it may be better to reduce your NI by low wage/ high dividend and don’t pay any employees or employers NI in the first place.
On registering for payee when asked if i would like to sign up for NICs Employment Allowance i ticked the box on the thinking that if i did pay myself over the £152 level & incur NI then i would not have the extra cost of employers NI to pay.
On registering for payee when asked if i would like to sign up for NICs Employment Allowance i ticked the box on the thinking that if i did pay myself over the £152 level & incur NI then i would not have the extra cost of employers NI to pay.
Hi Jeff
You are right in that, within limits, you will avoid the extra cost of Employer NI but the Employee NI is unaffected. These are paid by the employee to HMRC with the employer acting as unpaid tax collector.
So if you, as an employee, go over £153 gross pay in a week you will, as that employee, be liable for employees NI and as an employer, of yourself, you will be responsible to collect that NI (and any income tax) and send it to HMRC on a monthly basis (one month in arrears or maybe quarterly for small businesses).
shake:
On registering for payee when asked if i would like to sign up for NICs Employment Allowance i ticked the box on the thinking that if i did pay myself over the £152 level & incur NI then i would not have the extra cost of employers NI to pay.Hi Jeff
You are right in that, within limits, you will avoid the extra cost of Employer NI but the Employee NI is unaffected. These are paid by the employee to HMRC with the employer acting as unpaid tax collector.
So if you, as an employee, go over £153 gross pay in a week you will, as that employee, be liable for employees NI and as an employer, of yourself, you will be responsible to collect that NI (and any income tax) and send it to HMRC on a monthly basis (one month in arrears or maybe quarterly for small businesses).
if youve paid ni for 35 yrs which entitles you to state pension,do you still have to pay it.
enginehead:
if youve paid ni for 35 yrs which entitles you to state pension,do you still have to pay it.
Hi enginehead
I’ve got no idea about over state pension age still getting to grips with the before aspect, but this may help.
Regards,
Jeff.
if youve paid ni for 35 yrs which entitles you to state pension,do you still have to pay it.
Hi Enginehead
Once you are over state pension age you no longer have to pay Employees (Primary) National Insurance Contributions. Your NI category letter should be “C” and most if not all payroll software will not deduct employees NI for this category. However the employer is still liable to pay Employers (Secondary) NI on earnings over £153 per week at 13.8% (some odd exceptions). But maybe that is not your concern.
With state retirement age liable to change you may need to check that you are unlucky enough to have reached that age and if so and you are still paying employees NI then raise the matter with your employer. Some ask for certificates of exemption but all that is needed it to show an employer proof of your age such as your birth certificate or passport.
shake:
if youve paid ni for 35 yrs which entitles you to state pension,do you still have to pay it.Hi Enginehead
Once you are over state pension age you no longer have to pay Employees (Primary) National Insurance Contributions. Your NI category letter should be “C” and most if not all payroll software will not deduct employees NI for this category. However the employer is still liable to pay Employers (Secondary) NI on earnings over £153 per week at 13.8% (some odd exceptions). But maybe that is not your concern.
With state retirement age liable to change you may need to check that you are unlucky enough to have reached that age and if so and you are still paying employees NI then raise the matter with your employer. Some ask for certificates of exemption but all that is needed it to show an employer proof of your age such as your birth certificate or passport.
awreet shake and yorkshire jeff im not retirement age yet left school at 15 so bin payin stamp for45 yrs.i know youre entitled to state pension after payin stamp for 35 yrs.what im tryin to find out is can i stop payin my stamp now cos ive got over 35yrs in.iv 5 years till retirement(cant wait).
awreet shake and yorkshire jeff im not retirement age yet left school at 15 so bin payin stamp for45 yrs.i know youre entitled to state pension after payin stamp for 35 yrs.what im tryin to find out is can i stop payin my stamp now cos ive got over 35yrs in.iv 5 years till retirement(cant wait).
You can stop paying by earning less then £153 per week otherwise No Chance.
By the time you are looking to retire they will have put the state pension age up to 98 to help with the deficit reduction 
keep on trucking for another 38 years.
enginehead:
I`m tryin to find out is can i stop payin my stamp now cos ive got over 35yrs in.iv 5 years till retirement(cant wait).
AFAIK if you have a minimum 30 yrs NI contributions you have paid enough in to get your basic state pension.
However any further contributions, contribute to other entitlements such as widows pension.
AS I have got my 30 in, I haven`t paid any NI for the last 5yrs, however recently due to other circumstances, the state now pays my “stamp”, effectively boosting entitlement to those additional pension benefits
peirre:
enginehead:
I`m tryin to find out is can i stop payin my stamp now cos ive got over 35yrs in.iv 5 years till retirement(cant wait).AFAIK if you have a minimum 30 yrs NI contributions you have paid enough in to get your basic state pension.
However any further contributions, contribute to other entitlements such as widows pension.
AS I have got my 30 in, I haven`t paid any NI for the last 5yrs, however recently due to other circumstances, the state now pays my “stamp”, effectively boosting entitlement to those additional pension benefits
It used to be 40 years and then it was changed to 30 and then with the new state pension rules of the last couple of years it was changed again to 35.
In the current system, once you have the “years” for your own state pension then extra years count now for nothing.
In earlier times there was graduated, SERPS (so called state second pension) and opting in/out so paying for longer meant possibly a higher pension. So it is quite possible that a worker could be drawing a state pension well in excess of £200 per week. Mine is about £170 per week because I was opted out (Company Pension Scheme) for some time. This is pure state pension, it does not include any other benefit such as my Zimmer frame.
When on some benefits the “State” may give a credit towards a “Stamp” but as far as I know there is no way that you will escape Employees NI if you are an employee, under state retirement age and earn over £153 per week.
You may not have paid any NI for the last 5 years but it has nothing to do with “As I have got my 30 in”.
It wouldnt apply to a director of a ltd company. And as such you shouldn’t be paying any NI but you will be able to claim a credit to give you your stamp. If your claiming this as an se driver and your paying paye to your self you need to get some proper financial advice from a an accountant. By paying paye you effectively paying more tax than you should be
alix776:
It wouldnt apply to a director of a ltd company. And as such you shouldn’t be paying any NI but you will be able to claim a credit to give you your stamp. If your claiming this as an se driver and your paying paye to your self you need to get some proper financial advice from a an accountant. By paying paye you effectively paying more tax than you should be
How could a se driver pay paye to himself??
whelmic:
YorkshireJeff:
With the government introducing the Employment Allowance for businesses which gives employers a £2000 reduction in there NI bill which would (if my sums are correct) raise the threshold by £38 to £190 per week before paying any Employers NI.
Employment Allowance: What you'll get - GOV.UK
Is any Ltd drivers here using this scheme,? Would it be of any benefit to one man Ltd company’s.Regards,
Jeff.Yes I use it. It effectively means my limited company now pays no employers NI at all.
Another benefit of being limited rather than PAYE.
This is what I was referring to
Whats the minimum you could pay yourself to qualify for payments towards your state pension ?
663per month
YorkshireJeff:
Whats the minimum you could pay yourself to qualify for payments towards your state pension ?
You need to pay yourself above the Lower earnings Level of £111 per week or £481 per month.
If you earn below the LEL then you won’t be have to pay any NI and that week won’t usually count towards your NI record.
If you earn between the LEL and £153 per week (the Primary Threshold) then again you won’t pay any NI but your record will be automatically creditedfor that week.
Thanks lads,
Best contact hmrc to see how many years i have to make up to be eligible for the full state pension, think i owe a few years class 2 50yr old now so best start getting my house in order. 