National Insurance Contributions To Rise – What Does This Mean?

Earlier this week it was announced by Prime Minister Boris Johnson that from April 2022 certain National Insurance (NI) rates are to raise by 1.25 percentage points to bring extra funding to the NHS in order to help with the current crisis within the social care system. This social care levy will be payable by all working adults, this includes workers over the state pension age.

The increase will apply to Class 1 National Insurance Contributions (NICs) which is paid by employees, and will apply to Class 4 NICs which is paid by the self-employed.

If you’re employed…

Currently, employees pay Class 1 NI Contributions, which is 12% on their earnings between £9,568 and £50,270, and then 2% on any income over £50,270.

In line with the NI rise, the tax rates will increase to 13.25% and 3.25%.

Example of how your NI contributions would look following the rate increase:

If you’re self-employed…

Workers who are self-employed pay Class 2 & Class 4 NICs on their profits.

Class 2 is paid if your profits are £6,515 or more a year, which is £3.05 per week.

Class 4 is paid if your profits are £9,569 or more a year. 9% on profits between £9,569 and £50,270. 2% on profits over £50,270.

Only Class 4 NICs will be increased with the NI rise, Class 2 will NOT be impacted. Class 4 NICs will be increased to 10.25% main rate and 3.25% higher rate.

Dividend tax rates will also increase by 1.25% from April 2022.

 

 

If you need help with further understanding of how this will impact you, get in touch with us at hello@bkplus.co.uk

Kim Richards Joins BK Plus

One of the regions newest and fastest growing accountancy firms has announced a new service offering, which will support businesses with their banking, financing and restructuring needs.

David Baldwin and Shaun Knight launched BK Plus Limited only 4 months ago.  The team is already 45 strong and it continues to grow.  Announcing their first acquisition after only 3 months, they are now adding to the services that they can offer their growing client base and other businesses.

BK Plus has appointed Kim Richards, a licenced insolvency practitioner with nearly 20 years’ experience in the sector, to build and develop a banking and restructuring team.

Kim said “It is great to be back working with David and Shaun, they have an amazing team around them and I’m looking forward to meeting up with existing contacts and making new ones too.

“As financial support in response to COVID is slowly withdrawn, we want to give guidance and support to businesses and owner managers to help them proactively navigate the road to recovery”.

“The earlier a business seeks professional advice in relation to its financial circumstances from a qualified, experienced person, the more options there are likely to be available to overcome any problems”.

Shaun Knight, co-founder of BK Plus, said the appointment will allow the firm to support new and existing clients, and, the wider business community.

He said: “Kim is very well known and respected in the business and legal community across the region and has vast experience in her field.  We are delighted to welcome her to the firm”.

“As well as restructuring advice, Kim understands the difficulties and financial strain that business owners can face and the impact that this can have on a company.  Kim brings an informed perspective to these challenges looking at viable solutions for recovery.”

“This is another exciting development for BK Plus, coming on the back of a very successful first few months and we expect to see this service line expand in the near future.”

The appointment comes after BK Plus acquired Chapman Nash accountancy in Barford, Warwick, as it expands its services north and south of Birmingham.

BK Plus, which is headquartered at Walsall Business Park, was launched to support SMEs, owner-managed businesses, and larger corporates.

It already provides a wide range of business advisory services such as accounts, audit, taxation, bookkeeping and payroll, through to corporate finance and other specialist advice.

 

 

Introducing Gary, Chris & Their Team.

Gary Powell and Chris Blue, with a combined 50 years of experience, (7 of those working together in a Top 10 accountancy firm) have joined the BK Plus team! Gary and Chris specialise In adding value to SMEs with growth planning, structural changes and to help tailor growth plans.

Gary and Chris previously ran a local Cannock office where together they built an amazingly supportive team. During their time there they worked closely with businesses in Cannock, South Staffs and surrounding areas.

With even more great news to add,  we are thrilled to be able to also welcome their team in joining us – James Killian, Ben Mason, Olivia Edwards, Toni Foster, Nicola Aspinall, Claire Jones, Amanda Henson and Hannah Greatrex– not to mention others who are looking to join!

Having a team of this size join us will allow a continuation of work for former clients who have also chose to join BK Plus, as well as us being able to provide a strong advisory service with localised knowledge –  which is crucial now more than ever for businesses.

Gary said “We are thrilled to be back working with David and Shaun, and looking forward to getting back to what we do best, supporting our clients with their growth plans.”

Chris said “The thing that has surprised me most is the amount of staff that chose to join us at BK Plus and the amount of clients that have been in touch and would like to continue to work with us because of the relationships we have built with them over the years.”

Working side by side with both Gary and Chris for a number of years, we are very pleased to have them join the business and help us drive forward the company’s ambitious growth plans.