HOLIDAY COVER AND STAFF CHANGES
For most of us, it probably feels like the summer has been here for the last few months with the gorgeous weather we have had.
For the Moore Accountancy team the coming months create the added challenge of school summer holidays whilst ensuring we can continue with providing a great service for our clients.
We have also had some staff changes which are detailed in our recent post on our website.
In terms of holidays a list of the main ones are below. There will always be staff cover in the office but please bear with us during this time:
Sid is away from 2/8 - 21/8
Katie is away from 20/8 - 29/8
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Class 2 NIC changes - what it means for the self employed
There are various classes of NIC paid by employees and self employed. Class 1 is paid by the employed, Class 2 is paid by all self employed who earn above the "small profit threshold", Class 3 is a voluntary top up contribution if you have not made NIC contributions in a certain year, and Class 4 is paid by self employed traders on their total profits.
Class 2 NICs gives entitlement to State Pension, Maternity Allowance, Bereavement Benefits and the Employment & Support Allowance.
From 6/4/19, payment of Class 4 NIC will give entitlement to these benefits.
For 2018/19, Class 2 is payable at £2.95pw (£153.40pa) whereas Class 3 is payable at £14.65pw (£761.80pa).
From 2019/20 it has been announced that Class 2 NIC will be abolished but that for those self-employed persons with profits that fall between a new Class 4 NIC Small Profits Limit and the Class 4 NIC Lower Profits Limit will be deemed to have paid Class 4 NIC thereby giving the person a qualifying year for benefit entitlement purposes
Using 2018/19 rates, as an illustration, this gives the following effects:
| Profits below £6,032 |
No Class 4 NIC Payable |
| Profits between £6032 and £8,423 |
Class 4 NIC deemed to have been paid |
| Profits between £8,424 and £46,350 |
Class 4 NIC payable @ 9% |
| Excess of Profits over £46,350 |
Class 4 NIC payable @ 2% |
It will be even more important for low profit or loss making traders to consider their NIC position in the coming years.
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