This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Reducing NICs on business income

Shared from Tax Insider: Reducing NICs on business income
By Alan Pink, October 2021

Alan Pink looks at ways that businesses can avoid overpaying National Insurance contributions to HMRC. 

National insurance contributions (NICs) are often overlooked in tax planning, but are a major source of income for the Government. Many regard NICs as being no more, effectively, than another tax. I have to say that this point of view has a lot going for it.  

First of all, let’s look at the basics.  If you’re a sole trader or a partner (including a ‘partner’ in a limited liability partnership), some of the ways of saving NICs are the same as straightforward planning techniques to cut down the size of your income tax bill.   

For example, if you’re a sole trader liable to NICs at the self-employed rates on all your income over about £12,500 a

This is one of our 2098 Premium articles

To see this article in full and unlock access to our complete library of 2098 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!