Changing digs and coming out of my cave... for a wee while atleast :)

edinburgher

How can you go NI dark?

I thought that NI was paid regardless (unless you use salary sacrifice to avoid it)?

elantan

Well I'm thinking to get enough back from the tax man that means I am NI conts neutral ie pay £50 in national insurance so put an extra £200 into pension ?


Yes u still pay the national insurance ... But you get it back on the pension through tax relief

edinburgher

But you get it back on the pension through tax relief

I'm not meaning to be a cheeky pup, but tax relief refunds tax (not NI charges, which are seperate)?

elantan

Wrote a reply and it got lost

Yes you are correct I was thinking more along the lines of trying to go national insurance neutral so that if I get say £1k a month wages ( I wish) I would pay just over £42 a month in tax and £42 a month in national insurance

Now say I put £500 into a pension I would get over £100 in tax relief meaning that the government will have given me £16 more than I have them

Ok it's not totally tax neutral as there is the tax for fuel, alcohol etc but it's a good start in getting some o the money back I pay them

It isn't strictly speaking a dark national insurance matter ... But it is being sneaky with the government

I may have to change my name to Elbucks or something

edinburgher

I see what you mean

VAT, council tax, fuel tax, SDLT, SD, tax on flights etc.

I seriously wonder what my real rate of tax is.

*Edit: Fresh off the press, because Monevator is psychic

Karmacat

The dark thing is about living within the personal tax allowance, I think, and withdrawing that amount from your pension pot - while contributing the same amount as a fresh contribution, which then gets an automatic tax increase, i.e. a £10,000 contribution by you is marked on your tax form as £12,500 (I did this for the first time last year, with a £5,000 contribution, and the tax people do ask you to write it that way).

I'll do some research this evening

edinburgher

which then gets an automatic tax increase, i.e. a £10,000 contribution by you is marked on your tax form as £12,500 (I did this for the first time last year, with a £5,000 contribution, and the tax people do ask you to write it that way).

Didn't the recently announced pension changes say that in future, nobody drawing from a pension will be allowed to pay into a pension ever again? I believe this was to prevent this sort of 'recycling'

Karmacat

Oh bleep! So I discover the concept in the week that the loophole is closed :rotfl::rotfl::rotfl: I'm not very good at this lark!

Oh well. I'll have a looksee. Thanks for the heads up.

Karmacat

Here it is: http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09103590.htm

Aren't they mean well, it gives me some goals to aim for, anyway. Sorry for the hijack, El :kisses3:

elantan

Hi jack away Kc ... Please ...

It's all important information that we can all use at some point