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Where Taxpayers and Advisers Meet

Reduce NI

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am
Reduce NI

Postby Dave12335 » Fri May 29, 2020 7:03 pm

Can a HRTP reduce employees NI by condensing all their salary sacrifice into a few months of the year below the upper earnings limit ?

It appears they effectively cost NI at 2% on the increased and save it at mostly 12.8% on the decreased months so it could save someone about £200 say.

Is that workable ?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Reduce NI

Postby robbob » Mon Jun 01, 2020 8:31 am

That's a pretty good question. Presuming you are simply a non director employee then it's your employers responsibility to deduct the correct tax and ni. So if they let you use that solution i can't think of any problems. NI for directors is calculated on an annual basis so the same cunning plan wouldnt work if you are a director.

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am

Re: Reduce NI

Postby Dave12335 » Sat Jun 27, 2020 5:09 pm

Thanks robbob


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