Are National Insurance Contributions tax deductable?

TANZA_2

I was just wondering if things like National Insurance contributions are taken off your total earnings before they are taxed? I know company pension contributions are, and you have your personal allowance but dont' know about NI. If they are not tax deductable then it seems that we are paying twice for tax, doesn't it?

CLAPTON

no they do not come off before tax.

RayWolfe

Many things are taxed twice. NI, VAT, Petrol Duty, etc., etc.

TANZA_2

I didn't think of that-we are taxed to the hilt aren't we? It seems as if you're just an ordinary soul then you can't get away with a thing whereas if you're a multi millionaire you can evade all sorts. Life's not fair but no-one said it was I suppose!

jamesd

There is one major tax escape: stocks and shares ISA investing. Start investing 275 a month at age 20 and you'll have half a million to retire early with at 55 if you get a return of 7% after inflation, something that's entirely reasonable.

Pension contributions grow the tax free lump sum but since you pay tax when you take the money out it's not a pure tax gain. You can save employer and employee NI on pension contributions if your employer pays those out of gross salary and reduces your effective salary and this is also a nearly pure gain.