National Insurance contributions (NICs) are a vital consideration for employers, particularly when providing employee benefits or using PAYE Settlement Agreements (PSAs). While employees generally pay Class 1 NICs on their earnings, Class 1A and Class 1B contributions are the responsibility of the employer alone. Understanding how these contributions work, which benefits are subject to them, and the associated deadlines can help businesses manage costs effectively and stay co

Interest earned on savings is a common form of income, yet many people are unsure how it is taxed. Whether interest comes from a bank, building society, or another source, understanding how the rules work can help avoid surprises and plan more effectively. This article provides an overview of how interest income is taxed in the UK, including the savings allowance and the 0% starting rate. How Interest Is Paid and Taxed Interest from UK banks and building societies is usually

A dividend is a distribution of profits by a company to its shareholders. When a UK company pays a dividend, the amount received is usually paid in full with no tax deducted at source. For example, if a shareholder receives a dividend of £18,000, that is the actual cash received. Dividends are treated separately in the income tax calculation because they are taxed at different rates from salary, self-employment income, and interest. They are always taxed as the final part of

Providing living accommodation to an employee can be a valuable part of a remuneration package, particularly where the role requires the employee to be close to their place of work. However, from a tax perspective, employer-provided accommodation is treated as a benefit in kind and can give rise to a taxable charge on the employee. Whether a tax charge arises, and how the benefit is calculated, depends largely on whether the accommodation is considered job related or non-job