Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Dropping a clanger

20 April 2010 / Rob Durrant-Walker
Issue: 4251 / Categories: Comment & Analysis
ROB DURRANT-WALKER warns of the impact of the state second pension on incorporation and remuneration levels


  • National Insurance contributions and the ‘qualifying year’.
  • Calculating the state second pension.
  • Taking S2P into account in incorporation calculations.
  • Formulae and worked examples.
  • S2P entitlement continues after 30 years.

This article looks at the impact of the state second pension and its potential effect on the decision to incorporate together with any impact on remuneration planning itself for the incorporated owner/manager.

It suggests that not dissimilarly to it transpiring that our beloved knitted pink whistling Clangers belied expletives and political statements our profession seems to have missed an extra underlying benefit of incorporation. Both were under our noses all that time.

State second pension (S2P) and the basic National Insurance retirement pension (NIRP) are based on NI contributions but the entitlement to their benefits is...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon