help regarding employee and insvestment and allownce

[yhm75]

hi friends

I have confusions

1)National Insurance contributions (NICs) Employment Allowance which introduce 2014

if I apply employer nic allowance its is called benefit or public benefit when I apply ilr this is consider as a benefit

2) this is my 1st year as a entrepreneur I want employee but I need now only part time
when I pay employee this will consider investment or not

pls help me

[hina_pirzada]

Dear Member.

Note the following points.

1) Employer Allowance towards NIC's which is £2000 exemption or relaxation for Employer's. The purpose of this exemption is to facilitate companies to create more jobs. There is no any attachments of benefits or public benefits in your personal circumstances.

2) If you pay your employee from your investment it will count towards your investment. Being director of the company if you withdraw your salary it will not count towards investment.

for example: if you have 4 employees working 16 hrs per week least 12 consecutive months and you pay them least minimum national wage which is £7.20 its absolutely fine and it will also fulfill for your job creation requirement as well.

[yhm75]

thanks for reply


any other members advice on this

[zimba]

1)National Insurance contributions (NICs) Employment Allowance which introduce 2014

if I apply employer nic allowance its is called benefit or public benefit when I apply ilr this is consider as a benefit

No. That is a business allowance given under HMRC rules. Has no relation with public funds or benefits

2) this is my 1st year as a entrepreneur I want employee but I need now only part time
when I pay employee this will consider investment or not

Any salary/tax paid towards employment you create is considered business expenses and acceptable for investment.