Why no NI

[Ivor1]

If you want to avoid paying it for as long as possible then apply the rates to the amount in excess of the annual threshold (5035 I think). This means you'll pay a little more monthly once the threshold is reached - but the same over the year.

Alternativley average salaries and apply the rates to that. This can lead to over/under payments and a balancing payment may be required.

In any event at the end of year a balancing payment can be required if there have been wild wings in income.

I think these may help

http://www.hmrc.gov.uk/nitables/ca44.pdf
http://www.hmrc.gov.uk/ebu/ni2003.pdf

Cheers everyone most appreciated.

[Ivor1]

As a director you don't pay any NI until you reach the threshold. I'm guessing that's why.

Does that apply to both Employer and Employee NI ?

Also does this threashold only kick in when you become a director ? In tax year 2006 - 2007 I wasnt a director until now, so I have already earnt and paid NI etc in this tax year as an employee does that not count towards the Director threashold, do I start at £0 when I become a director ?

Cheers

[expat]

Use the HMRC PAYE+NIC CD rom to calculate it. Or buy Sage Instant Payroll, 85 quid. The Revenue like Sage.