Overpaying National Insurance....?
randomfandom
Posts: 54 Forumite
Hi,
I'm working through an agency, but being paid through an umbrella company. I started my position last autumn and thought that as the financial year was coming to an end I would check my national insurance contributions.
To date, I've paid £799 but when I've checked on online calculators they all estimated that it should only have paid around £480 on my income of just over £12k.
I know that with an umbrella you pay both employer's and employee's tax and NI, but I assumed that the employee contributions would be the same as if you were paid PAYE.
Is there something I'm missing about being paid by an umbrella company which means they can deduct more NI than if I was PAYE, or has there been some sort of error where more NI has been taken than I was liable to pay?
I'm working through an agency, but being paid through an umbrella company. I started my position last autumn and thought that as the financial year was coming to an end I would check my national insurance contributions.
To date, I've paid £799 but when I've checked on online calculators they all estimated that it should only have paid around £480 on my income of just over £12k.
I know that with an umbrella you pay both employer's and employee's tax and NI, but I assumed that the employee contributions would be the same as if you were paid PAYE.
Is there something I'm missing about being paid by an umbrella company which means they can deduct more NI than if I was PAYE, or has there been some sort of error where more NI has been taken than I was liable to pay?
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Comments
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randomfandom wrote: »Hi,
I'm working through an agency, but being paid through an umbrella company. I started my position last autumn and thought that as the financial year was coming to an end I would check my national insurance contributions.
To date, I've paid £799 but when I've checked on online calculators they all estimated that it should only have paid around £480 on my income of just over £12k.
I know that with an umbrella you pay both employer's and employee's tax and NI, but I assumed that the employee contributions would be the same as if you were paid PAYE.
Is there something I'm missing about being paid by an umbrella company which means they can deduct more NI than if I was PAYE, or has there been some sort of error where more NI has been taken than I was liable to pay?
I assume that you have put into the calculator your total earnings to get this NI figure. This will give you the expected NI for someone who has earned this amount for the whole year getting roughly equal payments every pay interval ( ie every month or week they are paid). You get an allowance each pay interval on which no NI is paid and as you started part way through the year you have not received the full year's allowances that the calculator would assume.
To check the figures you need to put in each payday's earnings separately.0 -
Yes, I used the figure of my total earnings.
But shouldn't it balance out so that by the end of the financial year you've paid the correct equivalent amount, in the way that it does with tax?0 -
randomfandom wrote: »Yes, I used the figure of my total earnings.
But shouldn't it balance out so that by the end of the financial year you've paid the correct equivalent amount, in the way that it does with tax?
No it doesn't work that way. Each pay period, eg weekly, monthly is looked at seperately for NI, not cumulatve.Lost my soulmate so life is empty.
I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
Diana Gabaldon, Outlander0 -
If you tell us how much your gross pay is each week or month then we can tell you how much employees NI you should have paid. But the chances are that it is already correct and that you've just misunderstood how it works.0
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randomfandom wrote: »My gross is £496 per week.
Employee's NI 40.92
Employer's NI 46.92
Figures from listentotaxman so may vary by a few pence.
How does this compare to what you have paid?0 -
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Would help to un-confuse if you could give your figures. From the last payment of gross £496 give the tax and NI (ees and ers) deducted with other deductions and advise if any expenses are included if so full details.randomfandom wrote: »That would add up to around £2k, over the period that I've been working, so I'm even more confused now.
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Would help to un-confuse if you could give your figures. From the last payment of gross £496 give the tax and NI (ees and ers) deducted with other deductions and advise if any expenses are included if so full details.
To clarify - £496 is the total amount the umbrella receive from my agency out of which comes all deductions; that's what I meant when I referred to my 'gross'. Secondly, I'm not in receipt of any expenses.
They don't include 'ers' on my pay-slip. This is the last one I received. (Note that the total net pay is on the low side because it was processed in the same tax week as my previous pay, so I paid tax on a larger amount which I should get refunded on the next payroll.)
Gross Payments Pay (including basic pay) £379.37
Holiday Pay 35.00hrs x £1.32 £46.20
Sub Total £425.57
Total Net Pay £306.06
Payroll Analysis This Period Year to Date
Taxable Gross Pay £425.57 £12,075.21
Tax £85.20 £382.40
Employees NIC £32.89 £799.170 -
My calculator makes it £32.47 NIC due on gross pay of £425.57, so their figure of £32.89 is probably right.0
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