N I info

[chesters1]

What people?

I presume he means the people who turn the knob on the computer to take more or the people who take you to court when you try to avoid paying it

[corydoras]

How would you "avoid" paying NI? The only entity that can "avoid" paying NI would be an employer. It is employers who collect NI pay it to HMRC.

[chesters1]

Everyone has to pay it but if your illegally employed i doubt your employer will pay NI for someone they are not supposed to be employing ,i am sure the employer will remove even more money from this worker under the pretext of paying NI but i doubt it goes further than his pocket

The same for the self employed is everything transparent ? "stamps" is NI ,do mps pay extra NI for all their little speeches they make a great deal of money from ,do those than pay them pay their contribution?

 

NI is a percentage of your earnings if you dont declare all your earnings your avoiding paying NI ,you dont have to have a fixed employer you are supposed to declare your income to have the NI calculated therefore paid to the state

 

It amuses me a great number of the self employed have a gripe about not getting certain benefits others do but deliberately choose to pay less NI ,you really cant have it both ways

 

And ofcourse the people will be the ones sorting out who pays what ,if they are telling the truth and how to proceed unraveling this mess

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

Edited October 30, 2014 by chesters1

[corydoras]

Everyone has to pay it but if your illegally employed i doubt your employer will pay NI for someone they are not supposed to be employing ,i am sure the employer will remove even more money from this worker under the pretext of paying NI but i doubt it goes further than his pocket

The same for the self employed is everything transparent ? "stamps" is NI ,do mps pay extra NI for all their little speeches they make a great deal of money from ,do those than pay them pay their contribution?

 

NI is a percentage of your earnings if you dont declare all your earnings your avoiding paying NI ,you dont have to have a fixed employer you are supposed to declare your income to have the NI calculated therefore paid to the state

 

It amuses me a great number of the self employed have a gripe about not getting certain benefits others do but deliberately choose to pay less NI ,you really cant have it both ways

 

And ofcourse the people will be the ones sorting out who pays what ,if they are telling the truth and how to proceed unraveling this mess

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

That's basically what I said chesters. The only people who can fiddle NI are employers. I was including the self employed.

 

The self-employed wouldn't get away with it in France mate, they need to pay their cotisation (dues) just like everyone else. That does not mean that "working the black" as they call it does not exist, of course it does, but it's harder to do.

[barry luxton]

How would you "avoid" paying NI? The only entity that can "avoid" paying NI would be an employer. It is employers who collect NI pay it to HMRC.

I said on a self employed basis, you still have to pay a 'stamp' although you get no benefit.

 

and I'm not speaking about nicc payment, i.e. employers and employess contributions.

 

NI I'm referring to.

Edited October 30, 2014 by barry luxton

[corydoras]

I said on a self employed basis, you still have to pay a 'stamp' although you get no benefit.

 

and I'm not speaking about nicc payment, i.e. employers and employess contributions.

 

NI I'm referring to.

So do what I did when I worked for me. Set up a limited company, pay yourself a salary.

[Steve Walker]

As a very small company, when we have a bonus we usually discuss what's the company can afford to put into the pool before anyone's tax or NI comes out. So if we have £100 in the company to distribute as bonus, that has to be reduced to cover the employer's NI which will be 13.8% on what is paid gross - so that knocks the pool down to £87.87. Higher rate taxpayers then pay 40% on that, which knocks it down to £52.72. They then pay 2% NI, which knocks it down to £50.97, giving an effective marginal rate of 49.3%. It doesn't make any difference to us whether we say "the company has paid the NI" or "we have paid the NI", the bottom line is that almost half of the money to be distributed is taken as tax.

 

We have been talking about whether it is worth vesting everyone's share options and then using the money we used to put into bonuses to pay a dividend. There would be a significant tax saving, but it's probably not worth it unless people also reduce their salaries, and the revenue might not wear that. I suppose the fact that we are even having the conversation is the old Laffer curve in action.

[barry luxton]

So do what I did when I worked for me. Set up a limited company, pay yourself a salary.

have a llp for many years now, anyway what I have said and the question I am asking yet again, is the missus has been paying her 'stamp' for 37 years, more than what's required for a full state pension as being classed as self employed there is no benefit to be had when paying the stamp with she does each quarter, so again, what's the point in continuing in paying it.

[corydoras]

have a llp for many years now, anyway what I have said and the question I am asking yet again, is the missus has been paying her 'stamp' for 37 years, more than what's required for a full state pension as being classed as self employed there is no benefit to be had when paying the stamp with she does each quarter, so again, what's the point in continuing in paying it.

Ah OK, that's not what I thought you were asking. I suspect that there is no point, but I am no expert. Do you have an accountant? If so I'd ask my accountant.

[barry luxton]

Ah OK, that's not what I thought you were asking. I suspect that there is no point, but I am no expert. Do you have an accountant? If so I'd ask my accountant.

unfortunately with accountants they go to school to have their brains and humour removed, all you get out of them is a monotone black and white, nothing in between. Can't even get tax deductible on parking fines allowed with mine, sad g!t.