National Insurance - annual pro rata?

0611045

It seems National Insurance contribution thresholds are always quoted in weekly amounts, as opposed to annual amounts as in the case of Income Tax, on UK Government websites. Does that mean NI due is calculated on a weekly basis, as opposed to an annual basis?

For example, if weekly, a person earning £300 per week over the course of 3 months (assume 4 weeks each) - but has no income for the remainder of the year - will pay (300-110)*0.11 = £20.90 per week. If annual, the total taxable pay will be £3,600, which averages at £69.23 per week and falls below the Primary Threshold, and no NI is due.

I suspect the former...but just to check.

Thanks in advance,
0611045

noh

If you are an employee your NI is calculated on a weekly or monthly basis or whatever your pay period is.

See page 8 of this document for employers:-

http://www.hmrc.gov.uk/guidance/cwg2.pdf

Calculator here:-

http://nicecalculator.hmrc.gov.uk/Class1NICs1.aspx

If you are a director of a company your NI is worked out on an annual basis

http://www.hmrc.gov.uk/working/intro/employed.htm#6

The current years primary threhold is £139 per week. 12% is the current employee rate. £110 and 11% are last years figures.

http://www.hmrc.gov.uk/rates/nic.htm