National Insurance

Caped_Avenger · 17 March 2005 at 10:28PM

Maybe i'm being totally naive or missing something here, but how do i calculate how much NI i should be paying? It seems relatively simple to calculate how much income tax i should pay, but can't find a definite answer for NI.

This (based on 2004-05) seems to suggest i pay nothing on the first £79 i earn per week, 11% on the next £531, then 1% on the rest (if i earned that much! :rotfl: ). Oh, i'm full-time employed, with only one job, and no other things that should affect my tax/NI status, AFAIK.

Is it really as simple as that?

Thanks in advance,

The avenger.

isasmurf · 17 March 2005 at 10:40PM

Almost right. The Inland Revenue treat National Insurance contributions between the Lower Earnings Limit (£79 per week 2004-05) and the Primary Threshold (£91 per week for 2004-05) as being paid, so this is not deducted from your pay. This is supposed to protect those on low incomes.

So you actually start paying NI on earnings above £91 per week.

ukric · 17 March 2005 at 10:53PM

Inland Rev sent me a letter saying that I hadn't paid enough NI for one year and that I could make a voulentary contribution to bring it back in line.

Anyone know if there is a time limit on this. I know pensions are probably gonna go kaput by the time I retire (im 21) but better to be safe than sorry.

TIA

Caped_Avenger · 17 March 2005 at 10:53PM

D'oh! :rolleyes: If i put my glasses on the right way round, it quite clearly says that. Thanks for pointing that out!

Quidsin_2 · 7 January 2008 at 10:52AM

This is my first post to MSE so forgive me if I'm speking out of order. Here's a money saving tip that's particular to my circumstances - but I suspect others may be able to benefit.

Having worked for many years in industry I'm now self employed but with earnings below the Lower Earnings Limit.

In Industry I had built up 35 'qualifying years' of National Insurance payments. As a result of the 2007 Pensions Act, it is now only necessary to have built up 30 'qulifying years' to be eligable to the full basic state pension. So I now have the opportunity to take two money saving actions:
1) Apply for 'Small Earning Exception' from paying further NI.
2) Reclaim NI paid for this tax year 07/08, and the previous tax year 06/07.

The relevant HM Revenue & Customs form is CF10.

URGENT: Note that to claim back my 06/07 payments I must register my appeal before the end of January 08.

Hope this is of help to someone out there.

National Insurance

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