Hypothetical question stuck at tax threshold

Grumpy_chap

I'm going to add another observation that I just made:

FlaatusGoat said:

I receive a basic pay that's under the NI threshold. 

It may be worth increasing basic pay to the level that satisfies the NI contribution qualification for future state pension.

Marcon

Grumpy_chap said:

I'm going to add another observation that I just made:

FlaatusGoat said:

I receive a basic pay that's under the NI threshold. 

It may be worth increasing basic pay to the level that satisfies the NI contribution qualification for future state pension.

The standard approach for people like OP who are directors and shareholders in their own company is to take a salary just high enough to hit the Lower Earnings Limit (and thus get an NI credit), but below the Primary Threshold (at which point actually paying NI would kick in). 

OP has confirmed they are under the NI threshold, which is exactly what one would expect - i.e. they get an NI credit without having to pay either employer's or employee's NI.