National Insurance Contributions with variable pay

dvs

I've now received my final payslips for tax year 2012/13.

I have two jobs, one with regular monthly pay and a second job which is paid weekly but is variable (BR tax code). Some weeks I earn nothing for the second job, other weeks I earn small amounts (not paying any NI) and some weeks I earn larger sums (paying NI).

I've used various tax calculators and all indicate that I have paid less National Insurance contributions by about £500. I've read that there are weekly and monthly allowances for NI. Do these allowances apply for second jobs because I don't always pay NI on weeks were I earn small amounts? Will I owe any NI because of my variable pay (i.e. is NI also calculated annual by HMRC)?

Thanks in advance.

McKneff

No, you get an NI allowance on both jobs. I believe it is in the region of
about £107 per week.

Hope that helps.

chrisbur

If you have two jobs you usually get two NI allowances, though if the two employers are connected or if there is only one employer this may not apply. At the moment if your earnings are below The Lower Earnings Limit LEL currently £107 weekly then you pay no NI and you are traeted as having paid no NI. If your earnings are over The Primary Threshold PT currently £146 then you pay NI and are traeted as paying it. If your earnings fall between the LEL and the PT then you do not pay NI but you are traeted as if you did pay it. The above figures are weekly figures but if paid monthly then there are monthly equivalents. The figures go up a bit next tax year. Ni is based on your earnings period so if paid weekly it is worked out weekly, unlike tax which has a yearly allowance.

dvs

Thanks for the responses. It feels like a bit of a loophole getting two allowances but I'm not complaining! :j

I had noticed of weeks where I worked just one extra shift I was paying little or no NI (but full tax). I also noticed that when bonuses were paid I paid NI but not as much as I would have (presumably because of the upper limit and the fact the second job is weekly.

HMRC owe me money for overpayment of income tax (was put on a K tax code) so I'm pleased to know that what I thought was an underpayment of NI is nothing to be concerned about.

Davide123

Hi buddy
Don't worry, you probably won't have underpaid.
Like the guy says above, maybe you are looking at yearly thresholds rather than your earnings period,( weekly or monthly.)