National Insurance payable?

Bookworm105

Snozzle said:

From 2025 / 2026 the plan is for company 1 to reduce my salary to just under £5,000 but increase the pension contributions it makes to my pension avoiding paying any Employer NI and for the 2nd (joint company) to increase what it pays us (over £5,000 each) allowing us to claim the employment allowance.  I am hoping one offsets the other all being well.

I hope to limit the corporation tax due by getting both companies to contribute to my / our pensions.

bear in mind that the annual allowance limit for contributions to your pension scheme(s) is £60,000 per year
that is the total of all money going into the pension irrespective of where it comes from.
So in your case it would be the total of both companies and anything else you have going on outside those companies that pays into a pension scheme in your name.

Snozzle

Yes, thanks.  Sadly nowhere close to the annual £60,000 limit but syphoning off what I can via the company to make up for lost years while living off my main job income.