Single Director Company Warning

Single Director Company Warning.

Many small businesses have the benefit of the National Insurance Contributions (NICs) Employment Allowance.  What this means is that if you are a small business and have a total employers National Insurance liability of below £3,000 per year, the employment allowance means that small business do not pay any employers national insurance.

The issue is that many single director limited company directors may only employ themselves (and get paid more with a National Insurance liability) and/or run a small team of part time employees that themselves do not earn enough to be above the secondary national insurance threshold and pay employer/employee national insurance.

If you are a director and have “ticked” on your payroll that you qualify for “Employment Allowance” and you actually do not qualify, you could be in for a fine, interest, penalties and paying back up to £3,000 unpaid employers National Insurance.

Double check your National Insurance Contributions (NICs) Employment Allowance position today or contact us.