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  • FIRST POST
    • abarry7218
    • By abarry7218 18th Oct 16, 8:12 AM
    • 1Posts
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    abarry7218
    Employer's NI - Calculated on Taxable Income within Tax Year or Simply Pro Rata?
    • #1
    • 18th Oct 16, 8:12 AM
    Employer's NI - Calculated on Taxable Income within Tax Year or Simply Pro Rata? 18th Oct 16 at 8:12 AM
    Hi

    I haven't worked during this tax year and I want to incentivise my employer to pay me up to the 43k allowance so that I can take maximum advantage of the tax basic rate (20%) of tax during tax year 16/17, of which I would have 3 months remaining in the tax year from when I start work in January. To clarify, I would normally fall into the Higher tax band for my full salary.

    My question is: Is Employer's National Insurance Contribution aligned to the employee's taxable income within a tax year or simply calculated pro-rata regardless of taxable income?

    Therefore, would my employer reduce the Employer's National Insurance Contribution amount payable by paying me more during the 16/17 tax year (and subsequently reduce my salary in 17/18 tax year to reflect)?

    I'd like to know if this would be a mutually beneficial arrangement or whether I would need to offer to reduce my salary by a small amount to make it mutually beneficial.

    Thanks for advice in advance
Page 1
    • CLAPTON
    • By CLAPTON 18th Oct 16, 8:44 AM
    • 40,869 Posts
    • 29,612 Thanks
    CLAPTON
    • #2
    • 18th Oct 16, 8:44 AM
    • #2
    • 18th Oct 16, 8:44 AM
    Hi

    I haven't worked during this tax year and I want to incentivise my employer to pay me up to the 43k allowance so that I can take maximum advantage of the tax basic rate (20%) of tax during tax year 16/17, of which I would have 3 months remaining in the tax year from when I start work in January. To clarify, I would normally fall into the Higher tax band for my full salary.

    My question is: Is Employer's National Insurance Contribution aligned to the employee's taxable income within a tax year or simply calculated pro-rata regardless of taxable income?

    Therefore, would my employer reduce the Employer's National Insurance Contribution amount payable by paying me more during the 16/17 tax year (and subsequently reduce my salary in 17/18 tax year to reflect)?

    I'd like to know if this would be a mutually beneficial arrangement or whether I would need to offer to reduce my salary by a small amount to make it mutually beneficial.

    Thanks for advice in advance
    Originally posted by abarry7218
    NI is based on your monthly income and not your yearly income
    EU tariff on agricultual product 12.2%
    some dairy products 42.1%
    cloths 11.4%
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