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A client runs a consultancy business through a limited company. The PAYE scheme has been cancelled, so could his National Insurance contribution record be protected by the payment of class 2 rather than class 1 contributions?
I have just had a visit from one of my clients who runs his consultancy business through a limited company. He is single and has no employees.
Historically we have been in the habit of voting him director’s remuneration each year of an amount between the lower earnings limit and the earnings threshold and the balance as dividends.
I prepare a P35 on his behalf and make an additional charge on his annual accountancy fee to cover this work.
Embarrassingly it now seems that HMRC have cancelled the PAYE scheme and my client has received notification of this.
That said my client’s first thought was that this would save him some money off my annual fee and he would simply withdraw all the money that he requires for personal expenses as quarterly dividends.
However my concern is that he will then no longer be building up...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
