National Insurance ??

[ASB]

Yep, thanks.

Sounds dodgy though!

If you feel so badly make the required voluntary contributions.

I wouldn't use the word 'dodgy', but it is a fact that people who control the way they are remunerated can emphasise the law of unintended consequences. Hence ever increasing regulation to close down such "loopholes".

In this case, of course, the GOV't probably actually get slightly more in their coffers (can't be bothered to calculate it) because the limited income has the effect of increasing the corporate profit which is charged at 20%. And also the "spare" basic rate band is lost.

[doomage]

Not really - it's there to ensure low earners still get pension credit and entitlement to certain benefits

Low earners, like IT contractors and public sector executives.

[Clare@InTouch]

Yep, thanks.

Sounds dodgy though!

Not really - it's there to ensure low earners still get pension credit and entitlement to certain benefits

[gingerjedi]

So long as you are paying yourself more than the lower earnings limit of £107 per week, this still "counts" as a year worth of contributions for NI purposes.

You wouldn't however pay any Employees NI until you reached the primary threshold of £146 per week.

I hope this helps.

Yep, thanks.

Sounds dodgy though!

[MichaelSJD]

So long as you are paying yourself more than the lower earnings limit of £107 per week, this still "counts" as a year worth of contributions for NI purposes.

You wouldn't however pay any Employees NI until you reached the primary threshold of £146 per week.

I hope this helps.

[gingerjedi]

So how does it work when you pay yourself a salary that is just below the threshold where you need to pay NI yet it's enough to get your stamp?

Or am I not getting stamp??