should clients close their business, and reopen immediately in order to save the NI on first 10 employees?
What about Ltds formed, but not yet trading? Is there any anti-avoidance to stop this?
Presumably for established businesses it's not worth it, but I have 3 clients that opened within the last week, set up PAYE schemes etc but haven't yet paid employees? What should be done?
Andrew
Replies (5)
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Guidance to follow
I don't think you will get detailed guidance on this for a few months, maybe September I recall ?
It is a question I was asking but surely there will be some anti avoidance measures put in place.
Good value
It would be good value for those under IR35 since typically a good ~10% of their deductions to tax would be Employers' NI.
I'd wait for the legislation and guidance before doing anything
I'm sure the taxpayer will be thrilled that our first thought is how we can take advantage of a scheme designed to support genuine start-ups. What a profession!
Before anyone does something silly like closing a business and starting again, they should read Rebecca's article. The chances of there not being anti-avoidance rules alongside this are zero.
https://www.accountingweb.co.uk/topic/tax/emergency-budget-employer-relief-businesses/433727