Year End Tax Review 2007 Contents A word to the wise Employee pensions A matter of trust Pension policies Family tax planning Mr and Mrs Inheritance tax Employee cars and fuel Borrowings and tax Tax-free perks Two jobs = too much NIC? Give generously and save tax Children's savings? Company or trade? Capital gains Business tax Investment limits Should VAT be flat?

Two jobs = too much NIC? If you have more than one employment, or an employment and a self-employment, you could end up paying too much in National Insurance Contributions. There is a higher rate of NIC (11% for employees, 8% for self-employed) on the first slice of everyone's income, then a 1% charge on income above a set limit (£33,540 in 2006/07). If two employers pay salaries separately, or you have employment and self-employment, you may pay the higher rate on two separate amounts that add up to more than the limit. It is a simple matter to apply for the limit to be operated on the combined figure, but it is supposed to be done before the start of a tax year in which you are likely to pay too much. It is always easier not to pay NIC than to get it back after overpaying! Action Point! Could this affect you?