students pay NI???

melancholly

DrFluffy wrote:

Like there's going to be a state pension when we retire

well with no chance of a work pension on the horizon, and no money for a private one, i have to dream, right?!

Blacksheep1979

greyster wrote:

Well I am hoping to retire early :P

you still won't get your state pension early - and you'll be paying even less into it

lolly-i-pop

robgriz wrote:

I had to pay Ni insurance for the first time this month, only because I had worked 110 hours that calendar month. Even then, it was only £25. £20 does seem excessive depending on the hours you work(ed).

I have been working between 30 and 55 hours a week and been paying about 20 quid a week NI, so maybe it isnt too much.

100sctliberty

national insurance works in pretty much the same way as income tax - ie you only need to pay national insurance if you earn over a set amount in the year (I think it's roughly the same amount as the income tax threshold - around the £4,800 pa mark)

for example, i work loads in the summer and pay national insurance but barely work in term time and so only earn around £2,000-£3,000 pa

if you want to claim back your national insurance because you've earned below the threshold over the year you need to request it back from HMRC and send proof that you payed more NI than you should have (e.g. your P60 or Payslips)

the address to request national insurance refunds from is

HM Revenue & Customs
National Insurance Contributions Office
Refunds Group
Benton Park View
Newcastle-Upon-Tyne
NE98 1ZZ

although a lot of people have commented on NI contributions affecting your entitlement to state pensions, personally I feel that as a student you could do with the extra cash and so would rather pay into a stakeholder pension (or something along those lines) when I can afford it (ie when I have a real job) than pay national insurance when I don't actually need to

littlemissmay

100sctliberty wrote:

if you want to claim back your national insurance because you've earned below the threshold over the year you need to request it back from HMRC and send proof that you payed more NI than you should have (e.g. your P60 or Payslips)

the address to request national insurance refunds from is

HM Revenue & Customs
National Insurance Contributions Office
Refunds Group
Benton Park View
Newcastle-Upon-Tyne
NE98 1ZZ

umm..so does this mean if you earn below the personal allowance before tax is 'allowed' to be deducted, which is currently 5035pounds, u can claim back ur NI contributions? is that what ur saying? :rolleyes:

CrispyUK

littlemissmay wrote:

umm..so does this mean if you earn below the personal allowance before tax is 'allowed' to be deducted, which is currently 5035pounds, u can claim back ur NI contributions? is that what ur saying? :rolleyes:

You're getting confused between income tax and national insurance contributions. NI has a lower threshold.

CIS

NI cant be reclaimed (excepting errors) as its worked on a weekly basis, tax is worked on an annual basis.

With tax , if you earn less than £5035 in a yr you can reclaim any tax paid, with NI you pay weekly, for every week where you earn £97 or more. - ie with tax its an annual laibility, with NI its a weekly liability.


Here are the rules on NI and claiming refunds
NI manual
http://www.hmrc.gov.uk/manuals/nimmanual/index.htm
refunds
http://www.hmrc.gov.uk/manuals/nimmanual/nim37001.htm

melancholly

ts_aly2000 wrote:

We had a couple of students in our house a few years ago and they felt they shouldn't have to pay the council tax.....

but if someone is in full time education then they are actually exempt from council tax.

i realise it gets complicated when students and non-students are sharing, but they aren't obliged to pay it - it's something i've found can be very important to clarify before moving in anywhere because most people aren't happy with the idea of the bill being split one way less!

EDIT - the post i quoted appears to have been removed so feel free to remove this one too as it's no longer relevant!!

Ollieda

Savvy_Sue wrote:

What does your payslip say it is? Paying NI at that rate and not tax seems a bit excessive to me (and yes, students do have to pay tax if they earn over £5000-ish pa!) but the details should be on your payslip.

Now its changed again for students. Money you earn out of term will only be taxed if you earn over £5000 (ish) pa, however you can get taxed during term time if you are earning over £100 per week!!!!! So thats only 20 hours per week if you were earning £5/hour, some students can fill out those hours quite easily!

I didnt know about this but I got a new job about a month ago and forgot to fill out the tax form so I went to the office to fill it out the other day and I was given 2 forms to fill in: the normal A5 sized one which is now for out of term time earning and also a new A4 sized one which is for term time earnings!

Now students who are always in need of a bit of cash are limited to £100 tax free a week? bit odd! Most students could easily spend over that in a week (especially during freshers!)

melancholly

Ollieda wrote:

Now its changed again for students. Money you earn out of term will only be taxed if you earn over £5000 (ish) pa, however you can get taxed during term time if you are earning over £100 per week!!!!! So thats only 20 hours per week if you were earning £5/hour, some students can fill out those hours quite easily!

I didnt know about this but I got a new job about a month ago and forgot to fill out the tax form so I went to the office to fill it out the other day and I was given 2 forms to fill in: the normal A5 sized one which is now for out of term time earning and also a new A4 sized one which is for term time earnings!

Now students who are always in need of a bit of cash are limited to £100 tax free a week? bit odd! Most students could easily spend over that in a week (especially during freshers!)

the amount of £100 a week works out as £5200 a year - which is your tax free allowance! so if you earn over that then you should pay tax. if you're only doing a holiday job they don't tax anything (assuming you sign the right form) because it won't be a permanent thing - for a full year round job, you get your yearly allowance broken down into weekly chunks and if you go over that you pay tax. i don't think this is that new (annoying, yes! but not new!)