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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??
Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson
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.
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!
Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson
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.
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