Have you thought about remuneration planning for your company? Recent changes to National Insurance Contribution (NIC) rates, income thresholds and pension entitlements, coupled with previous changes to corporation tax rates, reinforce the importance of remuneration planning for owner-managers and their employees.
Below are details of the latest changes and how our employment tax specialists can simplify the planning process for you.
Why get remuneration planning advice?
For an individual and their company, remuneration planning is a vital component of tax-efficient financial management. Deciding how to pay the company owner – using a combination of salary, dividends or pension contributions – can have a significant impact on your tax position and cashflow.
NIC changes from April 2025: a summary
- Employment Allowance increase from £5,000 to £10,500
- Removal of the £100,000 eligibility cap
- Increase in the rate of employer’s NIC from 13.8% to 15%
- Decrease in the employer’s NIC threshold (the point at which employer’s NIC becomes payable) from £9,100 to £5,000
These changes may impact how funds are best extracted from your company. With experience giving tax advice to companies of all sizes, our team can help you plan for all the regulations tax-efficiently.
Key benefits of our remuneration planning service
Maximising your tax planning opportunities
Structuring remuneration packages efficiently to minimise personal and corporate tax liabilities with the most effective use of salary, bonuses, dividends and benefits, tailored to you and your company
Efficient use of allowances
Ensuring full use of tax-free allowances and reliefs e.g. dividend and personal allowances
Tailored remuneration strategies
Aligning remuneration with your company’s performance and your personal financial goals
Compliance with HMRC rules
Depending on the remuneration package, we will advise on the associated reporting requirements for both individuals and companies
Improved cashflow management
Planning remuneration in a way that best supports the needs of both your company and your personal cashflow
What our service includes
Fact-finding call
A conversation with you to understand the priorities for personal and company income and cashflow requirements
Personalised report
Our report will outline the best remuneration strategy for your circumstances
Follow-up support
Answering any questions in writing or via a follow-up call (of up to half an hour)
To learn more remuneration planning, and how our service can benefit you and your company, get in touch with Stephen Nicholls or your usual BKL contact, or reply to this email.
