Enter on the Employment screen details of your client’s employment earnings including salary, wages, commissions and bonuses. Other sources of income that are not subject to NI, such as rental income or royalties, should be entered separately as Other Income.
1. To start, select Employment in the left navigation.
On this screen you will enter the details of your client's employment, including salary, wages, commissions and bonuses.
2. People: First, check the People panel located on the right side of the screen. A check mark will indicate the earner. The primary client will be selected initially. To select a different earner, click to the left of the name of the person earning the income.
Make the following entries and selections in the fields to the left.
3. Income Source: Select one of the following.
Employed – If your client receives earnings subject to UK income and NI taxes.
Self Employed – If your client is self-employed. Class 4 NI for self-employed individuals will be applied to any earnings and taxes will be assumed to be paid following assessment, in the subsequent year of the plan. The option is available, however, to tick “Tax as PAYE”, if taxes should be paid over the course of the year via pay-as-you-earn (PAYE). Read more >>
Company Owner – If your client is the owner of a company who may receive income as dividends. Dividend income is taxed at the dividend rate whereas earnings from a salary are taxed as income. Taxes are assumed paid over the course of the year via pay-as-you-earn.
4. Income Source Name: Enter a name for the income. This can be anything you like, provided that it is appropriately descriptive for later, when reviewing the case with your client.
The names of items must be unique within a given client case, both as a requirement made by the software and also as a best practice. It is much easier to track and review uniquely named items.
5. Salary £: Enter your client’s gross annual salary before pension contributions and taxes.
Tip - Enter Gross Income
Enter employment incomes in gross amounts – i.e. pre-tax, before the deduction of any pension contributions. Voyant Adviser will do the tax calculations for you. Pension contributions made from supporting salaries will also be deducted from this gross income. You may need to "gross up" income in cases where your client has provided a net income figure.
6. Select Monthly or Annual to indicate whether the salary above is a monthly or annual amount.
Tip:If you are entering a one-off income, it is likely that you would select Annual, unless you intend the Salary to be multiplied by twelve, as would be the case with a monthly figure. Read more >>
7. Bonus / Commissions £: If your client expects future income from bonuses or commissions, enter a total annual average of this income from bonuses and/or commissions.
8. Benefits in Kind £: Enter as an annual total the value of any taxable benefits in kind your client expects to receive on a regular basis. These benefits will be taxed accordingly, but are not subject to NI and will not appear in the cash flow project as inflows. Read more >>
9. Annual Dividend (net) £ (company owners only):If your client is a company owner and receives income as dividends, enter these as an average annual amount net of the basic 10% tax (i.e. the corporate tax, which is paid by the company), as this is how your client will receive the dividends. Read more >>
Note: The Annual Dividend field will be shown only conditionally, if the Income Source is set to Company Owner.
10. Tax as PAYE (self-employed only): You may tick this optional setting if your client is self-employed but pays taxes over the course of the year, via pay-as-you-earn (PAYE), rather than in the subsequent year following annual tax assessment. Read more >>
The software does not calculate the corporate tax paid by the company; it only calculates your client’s taxes. Any additional dividend taxes due on dividends, due to the individual being a higher rate tax payer, will be calculated at the end of year tax assessment and shown as "Additional Dividend Tax" on the annual tax summary. These tax details are found on the Let's See chart, click any bar of the whilst the income is active. The chart legend will display. Click the Detailed Info link. On the chart details panel, select the Taxes tab. Read more >>
11. Time: Check the Time panel located on the right side of the screen. Selections on this panel are used to set the time span over which the income will be earned.
Unless you ticked “already retired” when first setting up the client case, the start event (green dot) and end event (red dot) are selected by default, indicating that this salary will be earned from the beginning of the plan (the Start event) until your client’s planned retirement (the Retirement (Client Name) event.
Tip - The Time Panel: Selecting Alternative Start / End Events
Different start or end events could be selected to begin or end the income later or earlier in the planning timeline. To select an alternative time span for the income, deselect the default events by clicking the red dot (end event) and/or green dot (start event). Then reset the time span of the income by selecting different start or end events.
Tip:To view the year and age at which the income will end, move your cursor over the end event, Retirement (Client Name).
The line graph at the bottom of the screen will present a general illustration of how the income will grow and when it will end.
12. Click the Add button.
The Ledger: Viewing and editing incomes
The income will now appear in the ledger, located on the right side of the screen. Later, whenever you need to edit an item in the plan or view details about it, you will select it first in the ledger.
The ledger always shows initial annual values.Whenever an item needs editing, always select it first in the ledger. Details will be displayed in the fields left, ready for updates.
Click the Clear button if, after viewing details about the income, you need to clear the fields to enter another income.
Additional Options - Advanced Settings
Other optional settings can be found under Advanced Settings, should you need them.
Death in Service / Widows Pension – Would your client’s surviving spouse or partner be eligible to receive a salary-based survivor’s pension? Read more >>
Growth - Check the future growth assumptions on the income. If left unchanged, the initial growth assumption is taken from Preferences > Plan Preferences (to the right side of the screen) > Default Inflation / Growth Rates > National Average Earnings %. Read more >>
Step Up / Step Down – Income is assumed to be fixed, grown at the default or edited growth rate, until the income is scheduled to end, as set on the Time panel to the right side of the screen. Should younede to schedule future increases or decreases (steps) in salary or the growth rate of the salary, bonuses and commissions, dividends, or benefits in kind, these can be scheduled, usually by future event, on the Step Up / Step Down panel. Read more >>
Viewing and tracking the income in charts, overviews and reports
The income you've entered can be viewed and tracked in the: