Starting to draw a sallary mid year

[ASB]

Okay, I've been contracting for six months and finally have enough invoices paid to begin drawing a regular salary. Now I gather £5,225 is the most tax efficient amount to draw this year and still meet the minimum National Insurance contributions required to get a pension. However, given that we're in month 4 already, can I now take 5225/9 = £580 for each of the remaining months and still meet the NI criteria, or will the fact that NI is worked out on a weekly basis mean this won't get me enough NI to make a qualifying year?

Thanks, Tony.

That will still get you the years pension credit.

See page 24 of the attached for the mechanics of the NI calculation (which should come up wi=th an answer of zero each month).

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

I think the details of the calculation are also in you emplyers NI tables.

[THEPUMA]

Cheers Sock. So do I not pay the NI until the end of the year then? I thought I had to send them the money quarterly.

If you pay yourself £5,225, there won't be an NI liability so the question is moot. There may or may not be a PAYE liability, depending upon your PAYE code. If there is one, it is probably payable quarterly.