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National Insurance contributions

Hi

I was wondering if someone can confirm that I've got this right. At the moment I am a single parent working 16 hours a week at min wage. Thinking of increasing this to 20 hours.

I've woked out that my ctc and wtc will remain the same and I won't pay tax on my extra earnings. I don't pay NI contibutions at the moment but I've looked on the HMRC website and it states that on earnings above £95 a week, 11% will be deducted for NI contributions which means that I will only be about £11 better off for working 4 extra hours. Have I understood this correctly?

Comments

  • Stroof
    Stroof Posts: 68 Forumite
    If you are currently working 16 hours per week you must already be paying NI ?

    If you earn an extra £25 per week and pay 11% NI on that, the net extra is £22.25.

    If I were you I would want to pay NI contributions - this cancount towards your eligibility for some benefits, state pension in later life etc
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You would pay NI on earnings above £110 per week. If you earn between £95 and £110 you are credited with NI contributions even though none are taken from your earnings.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • kathryn_1
    kathryn_1 Posts: 35 Forumite
    Thank you for the replies.

    Sorry for being a bit dim but just to clarify would the 11% for NI be taken from all of my weekly earnings or would it be just the amount of earnings over the threshhold.
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    kathryn_1 wrote: »
    Thank you for the replies.

    Sorry for being a bit dim but just to clarify would the 11% for NI be taken from all of my weekly earnings or would it be just the amount of earnings over the threshhold.

    It would just be the amount over the threshold.
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