The Department for Work and Pensions looks set to press ahead with changes that will benefit owner only limited companies.
Currently, limited companies, whether they employ no people other than the owner (directors) or a number of employees are required to pay employers National Insurance Contributions. Proposals are in place to remove the need for owner only limited companies to not have to pay employers NIC.
Our View
Great news if they really do follow it through. Less revenue for the Government (or a promoted "spin" we think this may be a trap. Tread carefully if you plan to go limited as a result of this!