National insurance contributions

tracey_w

Hi i am not sure if i am in the right place.

But i am just wondering if anyone knows about the percentage of NI contributions we pay a month. I know it differs on the gross pay. But when i went on the calculator on the site i put in everything and it says i should pay £54.00 a month but i pay £63.88. I get £1056.00 before deductions so does this sound right????

Also does my NI contributions go up by 1% this tax year? I cannot work it out when i put it in it says i will pay £126.00 a month hahaha am sure this is not right.

How much % of our pay is the norm for NI contributions a month.

Thanks

MrsManda

During 10/11 most people will have paid:

11% if you earn between £110 and £844 a week. An extra 1% if you earn more than £844 a week.

It can change depending on different things including pensions schemes,

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048

For 2011/12
If you earn between £139 and £817 a week you'll pay 12%
If you earn over £817 a week you'll pay an extra 2%
http://www.hmrc.gov.uk/rates/nic.htm

I'm sorry, there's an error in my calculation. You don't pay any N.I. contributions for anything you earn under the lower limit (£110 2010/11 or £139 2011/12) so the calculation should be for 2011/12, 12% of everything you earn over £139 a week below £817 a week.


2010/11
You earn £1056 a month which is (1056*12/52) £243.69 a week
You don't pay NIC on the first £110 but 11% on the rest:
£243-110 = £133, 11% of 133 = £14.63 per week
£14.63*52/12 = £63.40 give or take some rounding. NIC a month

2011/12
Again you earn £1056 a month
Don't pay NIC on first £139 but 12% on the rest
= £12.48 a week * 52 / 12 = £54.08 NIC a month

chrisbur

Assuming that you are not in a contracted out pension scheme and do not hold a cert of reduced liability, you will pay 11% on earnings over £476 a month. So 1056 - 476 = 580 at 11% = 63.80. Looks about right. Did you round your gross down a bit?

For 2011/12 the rate goes up to 12% but the point you start paying also goes up to around £600 a month from memory. You will actually pay less NI as a result.