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NIC and company directors

June 21, 2021 by Sian Kelly

Special rules apply to company directors when it comes to calculating their Class 1 National Insurance liabilities. 

Why the rules

Directors, particularly of personal and family companies, can control how and when they are paid and, in the absence of special rules, would be able to reduce their Class 1 National Insurance liability by manipulating the earnings period rules. The rules circumvent this.

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