Should I be paying NI on overtime hours?

garfield33

Hi MSE-ers

I work full time (37.5 hours) in an NHS admin role. I recently started doing a few overtime hours for another department (usually 2-3 hours, 1-2 evenings a week).

For my main job I am paid monthly, and for my overtime I am paid weekly.

As I earn above the personal allowance in my main job, I was expecting my o/t hours to be subject to PAYE, which they are. However some weeks I pay NI on the o/t, and some weeks I do not. When I did pay NI, it was listed on the payslip as "NI A" and "NI D".

Can anyone tell me if I should or shouldn’t be paying NI on the o/t? Does it depend on the amount I have earned – the NI weeks are no higher or lower than the non-NI weeks.

And what is the difference between "NI A" and "NI D"?

I’m just wondering if I’m going to get a claim for unpaid NI sometime in the future, or if I have overpaid.

Thank you

McKneff

So all this is one job, the other hours being jst classed as overtime on yur payslip.

Or do you get a payslip for one job Monthly and another payslip for the extra hours weekly.

As far as I am aware, if you are just paid as 1 job and only receive 1 payslip then you pay NI on all your earned income at 12%.

CLAPTON

NI A is the rate appropriate for people not paying into a final salary pension scheme i.e. at 12% (above PT)

NI D is appropriate for people paying into a final salary pensions i.e. at 10.6% (above PT)

chrisbur

The rules for NI on a second job are that provided the second job has no conection with the first job then it is treated as if it was your only job for NI purposes. This means you get a second NI allowance for the second job and only pay NI on earnings above that allowance. If however the second job has some connection with the first job (eg two different employments with one employer, which seems to be the case with yourself) then the earnings from the two jobs should be added together and only one allowance given on this total. But, if the employer cannot add the two together for some reason, say each is paid from a different pay office, then they are allowed to treat them as seperate employments with no connection and give two NI allowances.

You may be paying NI at A and D in different jobs but if you mean you are paying both in your second job that sounds wrong, if this is the case can you give a example of earnings and the NI deducted?

garfield33

Hi everyone, thanks for your answers and sorry for the delay in replying - I was building up more "evidence". Yes the two jobs are within the same hospital trust, but in different departments. I get two lots of payslips - monthly for my main job, and weekly for the overtime. Here is info for the last 3 months:

Monthly pay (last Wednesday of each month)
Each month PAYE,NI D, pension (pre-tax) and student loan repayment are deducted.

25/04/12(before I began overtime, previous months are identical)
Gross £2046.17
NI D £147.63

30/05/12
Gross £2046.17
NI A £4.35
NI D £147.31

27/06/12
Gross £2046.17
NI A £13.83
NI D £147.31

25/07/12
Gross £2046.17
NI A £13.06
NI D £147.31

Weekly pay
A week isWed-Tue, and pay is received the Thursday of the following week e.g.01/08/12-07/08/12 will be paid on 16/08/12. Consists of payment for hoursworked, plus WTD, which I’ve been told is payment in lieu of leaveentitlements, and is also based on the hours worked. I just pay PAYE on these.The number of hours I work per week varies on the amount that the manager needsme to do.

24/05/12
Gross £36.28
No NI paid

31/05/12
Gross £55.49
NI A £6.66

07/06/12
Gross £59.76
No NI paid

14/06/12
Gross £55.49
No NI paid

21/06/12
No pay (I didnot work any hours the previous week)

28/06/12
No pay(timesheet submitted late, paid the next week)

05/07/12
Gross £61.89
NI A £7.43

12/07/12
Gross £57.63
No NI paid

19/07/12
Gross £45.90
No NI paid

26/07/12
No pay (didnot work any hours the previous week)

02/08/12
Gross £17.07
NI A £2.05

So my question is - should I be paying more NI on my overtime? Or less? Is the NI A that has appeared on my monthly payslips recouping what I haven't paid on some of the weekly ones?

Thank you

00ec25

garfield33 wrote: »

Is the NI A that has appeared on my monthly payslips recouping what I haven't paid on some of the weekly ones?

yes !
You need to confirm why it's non pensionable but on that basis your "overtime" is being treated as non pensionable so subject to NI at the non contracted rate of 12%. Thus your payroll dept has, as you say, recouped this unpaid NI via your monthly pay , so
May 36.28 @12% = 4.35
June 59.76 + 55.49 @12% = 13.83
etc

as Chrisbur explained above although you work in separate depts your pay is being treated as a whole

BTW calling it "overtime" implies it is linked to your main job, isn't it actually better described simply as the basic pay for your second job

garfield33

Thanks 00ec25, sorry about the confusion, yes it is an ad-hoc second job rather than overtime in my main job. (I do extra hours for that too, sadly those are unpaid...)

So - are you saying that I need to contact payroll, as the NI I'm paying should be pensionable, i.e. NI D rather than NI A?

jem16

garfield33 wrote: »

So - are you saying that I need to contact payroll, as the NI I'm paying should be pensionable, i.e. NI D rather than NI A?

Are you paying any pension contributions on this 2nd job?

garfield33

No the only deductions on the second job are PAYE, and the occasional NI A. I do pay pension on my main job.

jem16

garfield33 wrote: »

No the only deductions on the second job are PAYE, and the occasional NI A. I do pay pension on my main job.

That will be why you are paying NI A then. If you want your extra work pensionable then you would need to ask if it can be.