national insurance question

hermante

I am a student and have not worked this year. I have been invited to work for something related to my university, for one day only next week, for which I will be paid £200.

About 4 years ago, I was paid something like £100 a day for a few weeks to do some teaching, and I received the gross amount.

2 or so years ago, I worked about 1 hour a week at random weeks during the year, at £10 per hour. I was paid in a lump sum at the end. It should have been £115, but they deducted 55p for NI contributions.

Each of these times I joined the temporary staff bank and signed something that says I don't get annual leave or any staff benefits.

As I am well under the personal allowance, I shouldn't pay any tax. Since I'm not familiar with any of these things, can someone tell me whether they legally should deduct PAYE/NI because the earnings are over the weekly limit? If so can I ask them not to?

And if they do make me pay NI, is there any way to get it back, or will it count for anything in the future?

Thanks.

00ec25

assuming you are not a member of a pension scheme you will be an NI category "A" employee. This means you pay NI at 12% on all earnings over £146 per week. NI is calculated weekly, is not cumulative and therefore is why you did not pay it in the past as your weekly earniings never exceeeded the weekly thresholds. In 2010/11 the threshold was £110 per week and NI rate was 11% so you paid (£115-£110) * 11% = 55p

this time, as you will be paid >£146, you will pay £6.48 NI and can't reclaim it as NI is not cumulative.

I assume you have registered with the uni staff bureau as having no other jobs, so they should give you a full income tax code and you will pay no Income tax,

You will take home £193.52 for your 1 day's work which net of tax is £27.65 per hour so is not to be sniffed at so do not begrudge that fact that your NI payment will not count towards anything as you have to pay more that that in NI in order to receive a credit towards your state pension

BTW - you do get annual leave - but, by law, because you will not actually be able to take physical leave, they must include the cash equivalent of annual leave into your rate of pay, so your annual leave entitlement from your 1 days work is part of your £200!

hermante

Thanks.

00ec25 wrote: »

You will take home £193.52 for your 1 day's work which net of tax is £27.65 per hour so is not to be sniffed at so do not begrudge that fact that your NI payment will not count towards anything

True. I just haven't figured out how all of this works yet seeing as I've never had a full time job.

BTW - you do get annual leave - but, by law, because you will not actually be able to take physical leave, they must include the cash equivalent of annual leave into your rate of pay, so your annual leave entitlement from your 1 days work is part of your £200!

Yeah, in the past I got some extra percentage "in lieu of annual leave". I suppose it is included in this £200, but would be even better if it wasn't