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National Insurance Calculations

Please can anyone tell me the calculations to work out what my husbands national insurance contributions should be? I do not want a link to calculators as I need to see how the working out is done if possible please.

We are currently having alot of bother with my husbands pay. For the past three months they have paid him alot more than usual (which we are not spending as cannot see how it could be ours) but his payslips are really complicated, they include travel and subsistence, london weighting, health club and sports council memberships etc etc. We have been trying to get answers from the pay department but what they appear to be saying is that because the expenses take him over the 40% threshold then they are paying even more to counteract the extra tax so we dont lose out. I could understand this, but I do not see why his NET pay has been affected- surely that should remain the same? Currently his annual salary is 24364. He has bought home 1944 a month for the last three months. That cannot be right yet they are adamant it is. Its getting quite stressful as this extra money is going to affect tax credits- and its not even ours to keep :(

Comments

  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
    10,000 Posts Combo Breaker
    Based on weekly income NI is:

    • Up to £146 a week you don't pay national insurance
    • You pay 12 per cent of the amount you earn between £146 and £817
    • You also pay 2 per cent of all your earnings over £817
    Things are slightly different if you are in an opt-out employers pension scheme
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    I would suggest that you go to the Cutting Tax board and repeat the question there, but include exact figures from his pay slip so that you can get more specific advice than basic information II has been able to provide.
  • £1,944 if including the expenses is nowhere near enough for 40% tax which starts at £42k assuming he has a normal tax code.
    Thinking critically since 1996....
  • LittleVoice
    LittleVoice Posts: 8,974 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If the expenses are genuine for running the business then no tax is due on them and they are not included in NI calculations.

    Are the expenses actually taxable allowances?
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