Tier 1 Extesnion NIC and PAYE query

[vvr]

Hi

I am due to my tier 1 extension in Sep.12 and i am ltd. company director with 50% shareholder.

I am drawing salary of £ 1000 pm and paying PAYE tax as around £ 75 pm. and my accountant told that i have an exemption from NI till i reach the barrier of some amount. but now after reading few posts i am bit worry and asked my account the same and said as per HMRC everything is ok.

but what i am thinking is atleast for coming two months i want to pay NIC so that i can show that i have paid some amount of NIC. could yoy please suggest me do i really need to pay NIC or i can go ahead with PAYE only.

Waiting for the replies and thanks a lot in advance

[vvr]

could anyone answer my queries please......

[jeno]

V

Since you draw salary from the company, you're supposed to pay class 1 NI. If he runs your pay through a payroll software and says not necessary, then, it's fine. By the way when you're applying?

[gaurav76.5]

i agree with what jeno said

[John]

vvr, as a Director, for NI purposes you have an annual pay period, and accordingly no NI charged towards the beginning of the tax year, with a catch-up later in the tax year.

Totally normal, and nothing to worry about. You are currently technically paying NI, but the rate is 0%!

[vvr]

Hi,

Thanks indeed for all your answers. i am bit relaxed now, infact i discuused with my accountant and said want to pay NIC, as the homeoffice may ask whats my contribution for NIC, which is zero at the moment. but he said no worry if you want to pay we need to request HMRC and then i can pay NIC.

so what i am thinking is i leave it as it is and once the threshold reahced it will start automaticaly the NIC.

Plese sugggest me if i am wrong.

Jeno i am planning to apply in Sep.12

Thanks
VVR