Minimising NI by varying take-home pay

kimwp

If my gross pay is above the 40% tax threshold (60k) and I'm happy to take-home less than the 40% tax threshold, am I right in thinking that varying my pay (through pension salary sacrifice could minimise the amount on NI I pay - because NI is calculated for the period for which you pay tax, whereas a tax is an average over the year?

So on a low pay month, salary sacrifice down to min wage (22kish), to push as much of NI on a high pay month into 2% NI rate. 
On a high pay month, only salary sacrifice enough to get employer pension match: 5%, so some of NI paid is at the 2% rate.
Have enough low pay months to keep pay after salary sacrifice below the 40% tax threshold (£50,270) to keep those benefits
Overall pay the same into salary sacrifice pension (ie anything over £50,270)

Have I missed something?

zagfles

Nope. It works, been discussed a lot on the pensions board. Though it's not as beneficial as it used to be as the NI saved is now 6% compared to 10% a few years ago. 

kimwp

zagfles said:

Nope. It works, been discussed a lot on the pensions board. Though it's not as beneficial as it used to be as the NI saved is now 6% compared to 10% a few years ago. 

Ace, thank you. 

Grumpy_chap

Does the employer allow regular adjustments to the SS rate?
Although the legislation allows this, not all employers are as flexible.

kimwp

Grumpy_chap said:

Does the employer allow regular adjustments to the SS rate?
Although the legislation allows this, not all employers are as flexible.

They do, thank you for checking