Payslip query re. National Insurance

melanie858

I have two questions about payslip/national insurance contributions if anyone can help...

1) On my payslip every month the list of deductions is as follows:

Tax +£x
Nat Insurance +£x
EE NIREB -£2.56
Uss (private pension) +£x
Student Loan +£x

Can anyone tell me what the EE NIREB means and why the sign is negative (basically giving me £2.56 extra per month). I think it must be do do with National Insurance, but I've googled this code and nothing comes up?

2) I have used the listentotaxman calculater and the one on this site, and they say I should be paying more National Insurance per month than what I am. It seems I'm paying about £40 less per month, then I should be. Does anyone know if there could be a reason for this, or am I likely to be asked to pay this back in the future?

Thanks for any help !

Jarndyce

melanie858 wrote: »

I have two questions about payslip/national insurance contributions if anyone can help...

1) On my payslip every month the list of deductions is as follows:

Tax +£x
Nat Insurance +£x
EE NIREB -£2.56
Uss (private pension) +£x
Student Loan +£x

Can anyone tell me what the EE NIREB means and why the sign is negative (basically giving me £2.56 extra per month). I think it must be do do with National Insurance, but I've googled this code and nothing comes up?

2) I have used the listentotaxman calculater and the one on this site, and they say I should be paying more National Insurance per month than what I am. It seems I'm paying about £40 less per month, then I should be. Does anyone know if there could be a reason for this, or am I likely to be asked to pay this back in the future?

Thanks for any help !

1. Employee national insurance Rebate. Don't know why you would qualify for that its normally for people over retirement age but I guess there are other circs in which it is payable.

2. Don't know but could be linked to 1) ???

melanie858

Jarndyce wrote: »

1. Employee national insurance Rebate. Don't know why you would qualify for that its normally for people over retirement age but I guess there are other circs in which it is payable.

2. Don't know but could be linked to 1) ???

Ok thanks for that. I'm only 27, so defintely not above retirement age. I wonder what other circumstances this is offered for. I have only been in full time employment for 3 years - I was a student before that (undergrad and PhD).

yellowmug

It will in all likelihood be a salary sacrifice scheme for the USS - basically, the amount of your contribution to the USS will be taken off your gross salary (I think that's right, look at the USS website to check), but in return you pay less NI and end up better off. It saves me about £30 a month on a standard sort of postdoc salary, so the figures you quote sounds about right.

chrisbur

I would think that you are in a contracted out company pension scheme paying NI at the D rate. This D will proberbly show somewhere on your payslip. The listen to the taxman only works out NI at the A rate (ie the not contracted out rate) as far as I know so that will give a different answer.

D rate NI is at a slightly lower rate (1.6% less)than A rate NI because you are not paying into the state second pension instead you are paying into your company pension. This began many years ago before the introduction of the earnings thresholds so when they came in the D rate was no longer getting the benefit of a lower rate NI on earnings between the lower earnings limit and the primary threshold. To compensate for that if you earn over the primary threshold you get a rebate of 1.6% of the differance between the lower earnings limit £442 and the primary threshold £602 which is £2.56.

ultrarunner

chrisbur wrote: »

I would think that you are in a contracted out company pension scheme paying NI at the D rate. This D will proberbly show somewhere on your payslip. The listen to the taxman only works out NI at the A rate (ie the not contracted out rate) as far as I know so that will give a different answer.

D rate NI is at a slightly lower rate (1.6% less)than A rate NI because you are not paying into the state second pension instead you are paying into your company pension. This began many years ago before the introduction of the earnings thresholds so when they came in the D rate was no longer getting the benefit of a lower rate NI on earnings between the lower earnings limit and the primary threshold. To compensate for that if you earn over the primary threshold you get a rebate of 1.6% of the differance between the lower earnings limit £442 and the primary threshold £602 which is £2.56.

This is the only reason a NIC rebate should be showing on your payslip

lemontart

I also have a minus figure but code says ni te then a minus figure - tried getting an answer from the agency but getting no where - I am 51 by the way and to my knowledge do not have a works pension and the letter d appears no where on my payslip other than at the end of my ni number and that has always been there.

Any clues would be useful

anamenottaken

Are you actually in the USS scheme? That is for university academic staff or senior administrative staff in universities.

chrisbur

lemontart wrote: »

I also have a minus figure but code says ni te then a minus figure - tried getting an answer from the agency but getting no where - I am 51 by the way and to my knowledge do not have a works pension and the letter d appears no where on my payslip other than at the end of my ni number and that has always been there.

Any clues would be useful

Can you give full details from a payslip so that I can see which NI table is being used? The gross, taxable gross if different, net pay, any deductions, tax paid and NI paid employee's and employer's if shown.