WHy is my partner not paying NI?

chrisbur

shezam wrote: »

had a rummage in the drawer, and found his p60 ending 5th april 2012

It says
NIC table letter X
all the national insurance contribution parts have 0 in them.

X is usually only used for employees who are under 16 or dead. Definately query with employer.

shezam

Ok, thank you for your help guys

shezam

is he likely to get a bill? we are pretty skint as it is! x

xylophone

Have you read the link in post 3 above?
See also http://www.hmrc.gov.uk/nic/letters.htm

shezam

Yes I read post 3 but there is a lot of information can't really see who is liable for the national insurance once it gets sorted. I already came across the second link you sent, doesn't give much information on NIC letter X though!

chrisbur

shezam wrote: »

Yes I read post 3 but there is a lot of information can't really see who is liable for the national insurance once it gets sorted. I already came across the second link you sent, doesn't give much information on NIC letter X though!

In the first place the employer has to correct the NI and pay any that is due but they can then deduct the underdeduction from the employee if the error was "made in good faith" but have to follow the two rules below. Full details can be seen on page 13 at http://www.hmrc.gov.uk/guidance/cwg2.pdf

"However, there are special rules which allow you to recover underpayments of NICs from your employees where the error was made in good faith. This is done by making extra deductions from any later earnings you pay that employee.

There are two conditions that apply to these recoveries relating to the amount and the time in which you can recover.
The first condition is that the extra deduction you make from further payments of earnings can be no greater than the employee’s contribution due on that further payment of earnings.

The second condition is that the extra deduction can be made during the remainder of the tax year in which the error occurred and the whole of the following tax year. If at the end of the second tax year you have been unable to recover the full amount under-deducted, then you may not recover any more from the employee and you must bear the cost of the loss yourself. If the employee leaves your employment after the error occurred you must bear the cost of the loss yourself."

As to details of X NI rate it is used when there is no NI liability for employee or employer, off hand the only two occasions that I know of ar if the employee is under 16 when payment is made or if payment is made after an employee has died.

Apollonia

shezam wrote: »

Yes I read post 3 but there is a lot of information can't really see who is liable for the national insurance once it gets sorted. I already came across the second link you sent, doesn't give much information on NIC letter X though!

I found this:

National Insurance contributions (NICs) letter X

There are only three circumstances when you use category letter X:

• for employees paid below the Lower Earnings Limit for every pay period they work for you
• for pension-only schemes (don't use category C for these)
• for workers from abroad

The original page is here: http://www.hmrc.gov.uk/paye/payroll/year-end/errors.htm#x7

and it's in the section headed 'Common errors to avoid on form P14'.

HTH