NI conts - how much?!

wrenlegs

Hello,
I have 2 jobs and this seems to be causing HMRC no end of trouble. It looks like Im paying tax on all of my earnings even though I will only just go above my personal allowance. Argh! Anyhow, my main concern is the amount of NI conts I am making. On a gross income of 5,000 (since April) I have paid NI Ees of £206 and NIErs for £243.20. I have also paid £524 tax (so more NI than tax). Can this be right? If its not, am I able to claim it back? I received my remittance advice today and have only just noticed the cumulatives. Im a bit worried now. Can anyone advise? Thanks in advance.

Mikeyorks

What are the Code numbers and approx annual earnings at each job?

CLAPTON

for each job tell us

your gross earning to date
your taxcode
your tax to date
your NI to date

wrenlegs

CLAPTON wrote: »

for each job tell us

your gross earning to date Job 1 = 5,026.76 Job 2 = 1,000
your taxcode Job 1 = 605L Job 2 = I cant find at mo but its 1,000 worth of my personal allowance
your tax to date Job 1 = 523.99 Job 2 = I reclaimed the £150 they taxed me so nothing (cant put my hand on slip just now)
your NI to date Job 1= Ees £206.81 Ers £243.20 Job 2= cant find slip to say /QUOTE/

hope this helps

CLAPTON

when did you start job 1 ?
is there any other letters after 605L e.g like W1 or M1 or noncum or anything at all
do you earn the same gross amount each month (or week)

zagfles

NI is normally done on a pay period basis not a cumulative basis, and on a job by job basis so you can have an allowance in each job, if they are genuinely separate jobs ie for separate employers etc.

if you've only earned £5000 since April you seem to have paid far too much NI. Are these normal employee jobs rather than a ltd company you own or are a director of? Are you paid the same amount every month/week or is your pay very lumpy (ie big payments some months and small ones others)?

wrenlegs

Thanks for your replies. No other letters after tax codes. I work at a college and my pay changes monthly depending on how many extra hours I take on. I dont think its ever been the same in 2 consecutive months but at the mo its pretty stable. Why ever am I paying so much? Please tell me I can claim it back

zagfles

wrenlegs wrote: »

Thanks for your replies. No other letters after tax codes. I work at a college and my pay changes monthly depending on how many extra hours I take on. I dont think its ever been the same in 2 consecutive months but at the mo its pretty stable. Why ever am I paying so much? Please tell me I can claim it back

The way NI works is crap, basically.

You can end up paying more NI if your pay varies - you pay NI at 12% on pay above £602 per month. You'll find any month you earned under £602 you won't have paid any NI (£589 for employer's conts but your employer pays these not you).

You need to earn £442 per month to get your "stamp", so if you pay varies such that you sometimes earn under £442 and sometimes over £602, you will pay NI is some months but might not earn enough for your stamp, whereas if you earned £500 every month you'd get your stamp paid completely free!

wrenlegs

zagfles wrote: »

The way NI works is crap, basically.

You can end up paying more NI if your pay varies - you pay NI at 12% on pay above £602 per month. You'll find any month you earned under £602 you won't have paid any NI (£589 for employer's conts but your employer pays these not you).

You need to earn £442 per month to get your "stamp", so if you pay varies such that you sometimes earn under £442 and sometimes over £602, you will pay NI is some months but might not earn enough for your stamp, whereas if you earned £500 every month you'd get your stamp paid completely free!

So, if I contact HMRC when I get my P60 After April, will they be able to pay the overpayment back? Waht a ridiculous way of collecting NI. I am stressing as because I dont earn that much, I need every penny. I cant afford to wait until april - goodness knows how mcuh I will have paid by then:cool:

Mikeyorks

I think you're quoting the Employer NI contribution as well as your own. Your NI may not be too far out ..... it's the tax that looks odd if the Code is cumulative.

On £5026 (allowance £6055) at the 75% point (9 months out of 12) of the tax year I would expect :

£5026 less personal allowance £4541 = £485 taxable at 20% = £97 tax due.

But you appear to have paid £523.99

A quiet word with your payroll people after Christmas might throw some light?

zagfles

wrenlegs wrote: »

So, if I contact HMRC when I get my P60 After April, will they be able to pay the overpayment back? Waht a ridiculous way of collecting NI. I am stressing as because I dont earn that much, I need every penny. I cant afford to wait until april - goodness knows how mcuh I will have paid by then:cool:

Nope, you can't reclaim NI for uneven pay, it's just the way it works.

Think the only circumstances you could reclaim is if your combined earnings from the 2 jobs were ever over the UEL of £3540 a month, and doesn't look like you're anywhere near.

Probably best to come to an arrangement with your employer if possible to pay you more evenly. Maybe if you do a load of overtime one month to put part of the claim in the following month etc.

On the plus side you won't have to pay any NI at all in your other job, assuming you never go above £602, because you get an allowance per job, unlike tax.