National Insurance Employee Weekly Contribution Query

Al_Johnstone

I am weekly paid, usually around £200 at top of line. My first £139 is free of National Insurance (Primary Threshold), with the rest being charged at 12p in the £, so I usually pay around £7/£8 per week to National Insurance. On a week recently (week 38) my employer did not process my weekly wage on time, and instead added it to the next week's wage (week 39). As a result, instead of being deducted around £16 (2 x £8) for National Insurance, I have had £31deducted, because I have "missed" one week's Primary Threshold. I have asked my employer to correct this on their Payroll system but the say it can't be done due to "HM Revenue rules". I find this hard to believe? Surely HMR would allow an employer to make a simple correction? What do you think?

chrisbur

Al_Johnstone wrote: »

I am weekly paid, usually around £200 at top of line. My first £139 is free of National Insurance (Primary Threshold), with the rest being charged at 12p in the £, so I usually pay around £7/£8 per week to National Insurance. On a week recently (week 38) my employer did not process my weekly wage on time, and instead added it to the next week's wage (week 39). As a result, instead of being deducted around £16 (2 x £8) for National Insurance, I have had £31deducted, because I have "missed" one week's Primary Threshold. I have asked my employer to correct this on their Payroll system but the say it can't be done due to "HM Revenue rules". I find this hard to believe? Surely HMR would allow an employer to make a simple correction? What do you think?

Firstly they were wrong in the way that they paid you, if they refer to their guide CWG2 Employer Further Guide to PAYE and NICs
copy available at http://www.hmrc.gov.uk/guidance/cwg2.pdf
on page 38 there is a section headed "Working out NICs for employees not paid on their usual payday" In this employers are advised to work out the NI for each seperate week's payment when two weeks are paid together.
" ..........treat the early or late

payment as if it had been made at its usual time.

Example

Two separate weeks’ wages for weeks ending
10 June and 17 June are paid on 17 June. Work
out NICs separately on each week’s payment.
Record the NICs information for the late
10 June payment on the employee’s form P11

on the line covering 10 June."

Secondly what to do about a mistake is on page 17, from your point of view the important bit is
"Any overpayment of PAYE or employee’s share of

NICs should be refunded to the employee on the

next payday."