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Inheritance tax
There is a concern in many families as family-homes are increasing in value... more >

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Direct taxation on individuals includes capital gains tax and national insurance and the latter can increase... more >

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Beware Overpaying National Insurance

There are maximum contributions laid down. They are 53 weeks at the standard Class 1 contributions’ rate for employees between the earnings threshold and the upper limit earnings limit plus the 1% surcharge payable on earnings over the upper limit.

Thus the earnings limits for 2010-11 are £97 and £844 – a difference of £747. 53 weeks at £747 is £39,591. The employee Class 1 rate is 11% and 11% of £39,591 is £4,355.01. So the maximum contributions for 2010-11 are £4,355.01 plus any additional 1% contributions due.

Many people have more than one income on which contributions are payable and the there is a potential of paying too much. If there is such a danger the contributions’ payer may apply for deferment of the surplus which has to be made by 14th February during the tax year.

Class 2 (self-employed) contributions

Deferment may also be applied for where self-employed earnings are expected to be less than the small earnings’ limit of £5,075. Consideration should be given, though, to maintain contributions in order to maintain rights to future benefits.