2nd September 2020 / Core Accounting

Maximise your Personal Allowance in your Salary

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Do you earn £9,500 a year (or less) and you don’t know why?

This amount of employment income means you don’t pay any PAYE or national insurance, and no one wants to pay more tax than they have to!

But, did you know, if you raised your annual salary to £12,500 – you still wouldn’t pay any PAYE? But you would pay national insurance… and only £360 for the whole year! That means an increase in take-home pay of £2,640 per year.

Not only is that more money in your pocket, but the national insurance contributions also help to build your entitlement to government benefits such as pension and maternity allowance.

The final benefit is that the profits of your business would be reduced due to the increase in salary, meaning less tax for the business too.

If you would like more information, please get in touch using the form below.

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