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Where Taxpayers and Advisers Meet

Benefits without exceeding NIC Threshold?

MickyV
Posts: 16
Joined: Fri Jul 10, 2015 8:04 am

Benefits without exceeding NIC Threshold?

Postby MickyV » Wed Sep 05, 2018 8:18 am

My business pays each of its employees (all family members) £8,400 per year so no NI is payable.

If it also paid for gym membership, holiday travel, other bills etc. I understand that the employee would need to pay Income Tax on the benefit; but would the employer and/or the employee also have to pay National Insurance?

If so, would the employer then have to pay NI on the £8400 salary because the total of salary+benefits exceeds the Threshold?

pawncob
Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Benefits without exceeding NIC Threshold?

Postby pawncob » Wed Sep 05, 2018 11:42 am

NIC is charged on the excess only.
See:http://nicecalculator.hmrc.gov.uk/Class1NICs1.aspx
With a pinch of salt take what I say, but don't exceed your RDA

MickyV
Posts: 16
Joined: Fri Jul 10, 2015 8:04 am

Re: Benefits without exceeding NIC Threshold?

Postby MickyV » Thu Sep 06, 2018 7:01 am

Thank you.

Are there any benefits which can be provided which do NOT attract NIC (and therefore may be preferable to declaring a dividend)?

darthblingbling
Posts: 232
Joined: Wed Aug 02, 2017 9:09 pm

Re: Benefits without exceeding NIC Threshold?

Postby darthblingbling » Sun Oct 14, 2018 7:59 pm

Unless you're reimbursing the costs of usch benefits, I feel this is Class 1A not Class 1?


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