Tax Changes for Contractors working through their Own Limited Companies
Yesterday we highlighted the key changes to the amounts of personal taxation and national insurance contractors will pay due to changes that come into force for the new tax year (started 6th April 2015).
One of the changes that dictates how much many contractors will pay themselves as wages when working through their own Personal Service Company (PSC) is that employees national insurance now starts at a lower amount than employers national insurance (but up from the £153 in the prior tax year). With employee national starting at amounts greater than £155 per week (employers £156 per week). Many contractors will now set their basic pay at £155 per week as this means no employee or employer national insurance is payable at that level.
The standard tax code is now 1060L up from 1000L (a rise of £600 per annum).