National Insurance

It is easy to think that what goes for PAYE goes for NI too.  This is not always so – they grew up differently, with the Department of Social Security administering National Insurance until 1999, and setting most of the rules before then.  For example, did you know that where you pay a bill for goods personally provided to an employee of yours, this counts as income for class 1 NI purposes even though not for PAYE?  Well, that’s the case where the contract to supply the goods is between the employee and the supplier and you pay the supplier directly.  If you reimburse the employee, or if the contract is between you and the supplier, needless to say the rules are different.  And once you’ve mastered that, try working out the rules for short-term posted workers coming in from Bulgaria …

In our experience we frequently come across cases where NI has been forgotten in tax planning.  Why not ask us to help you get it right in the first place?