Should I be paying NI on a second job?

Tunstallstoven

Hi all

I've just started a second job. Main job is 32 hours per week. The additional new job is 6 hours a week. I'm paying the full 20% tax on the second income (as I presume my allowance is fully used in the first). But on the my recent payslip there's no deduction for NI..... Just wondering if this is likely to be mistake or if you don't pay NI on second income?

Cheers

Max

LittleVoice

Seagull27 wrote: »

Hi all

I've just started a second job. Main job is 32 hours per week. The additional new job is 6 hours a week. I'm paying the full 20% tax on the second income (as I presume my allowance is fully used in the first). But on the my recent payslip there's no deduction for NI..... Just wondering if this is likely to be mistake or if you don't pay NI on second income?

Cheers

Max

Not likely to be a mistake as they are correctly deducting tax.

Whereas tax is paid on your total earnings and is effectively spread through the year, NI contributions are due when you are paid - but only if your earnings in the particular job are above the threshold for payment. So having two jobs below the threshold would mean no NI would be deducted whereas earning the same amount in a single job could mean you did have to pay.

Threshold is £149/week.

dancingfairy

In terms of tax, you could be taxed on BR (emergency tax) which would tax all of the income in your second job at 20%. If your employers don't have a P45 then it's possible you were put on BR and in terms of NI you weren't charged because you were under the threshold in the second job.
df
Edit: https://forums.moneysavingexpert.com/discussion/578678 this thread appears to be useful and a similar situation to yourself.

Tunstallstoven

Great, thanks for explaining.

So, if:

- in Job 1 I earn £300 per week
- in Job 2 I earn £78 per week

then I pay NI as normal on the first job but absolutely zero NI on the second? That will be great if so! Not what I expected....

dancingfairy

That appears to be what the other thread suggests.
df

Linda32

Please may I ask a question as it is along the same lines, (I understand that its best to make your own thread so I hope this is okay)

My situation is that I earn £113.76 p/week in one job and £105.23 p/week in the other job.

How do you arrange to pay NI in these circumstances?

LittleVoice

Linda32 wrote: »

Please may I ask a question as it is along the same lines, (I understand that its best to make your own thread so I hope this is okay)

My situation is that I earn £113.76 p/week in one job and £105.23 p/week in the other job.

How do you arrange to pay NI in these circumstances?

Google "voluntary NI contributions"

chrisbur

Linda32 wrote: »

Please may I ask a question as it is along the same lines, (I understand that its best to make your own thread so I hope this is okay)

My situation is that I earn £113.76 p/week in one job and £105.23 p/week in the other job.

How do you arrange to pay NI in these circumstances?

You do not need to pay NI you are already treated as if you are paying it. Earnings above the Lower Earnings Limit currently £109 per week mean that you are being treated as if you are paying NI. The following is from Employer helpbook E12
http://www.hmrc.gov.uk/helpsheets/e12.pdf

"Lower Earnings Limit (LEL)

This is the minimum level of earnings that an employee needs

to qualify for benefits, such as State Pension and Jobseeker’s

Allowance. If an employee’s earnings reach or exceed this

level, but don’t exceed the Primary Threshold, they won’t pay

NICs but will be treated as having paid them when claiming

benefit."

Linda32

Hi Chrisbur,

Thank you for that.

Both of the jobs are on a temporary basis. First job 1 year maternity leave contract which will end on 6th Feb, when I revert to 'bank staff'. The second one is seasonal and will end around October.

My worry is that next February if I am unemployed I wouldn't be able to claim JSA as I hadn't paid any NI contributions in the previous year.

Or the fact that I know full well (although I might be wrong given what you have said above),on those earnings if added together I should be paying NI but fail to do so. I don't want to be chased in the future for further payments.

Kayalana99

I had the same thing when I took a part time evening job...I never did understand it as I could be working two jobs part time same hours and have a better wage then having one full time job! (If you were lucky enough to get decent hours that combined with each other)

But nvm...more money is more money.

Oh and once your first job finshs you should payNI on your second.

LittleVoice

Kayalana99 wrote: »

I had the same thing when I took a part time evening job...I never did understand it as I could be working two jobs part time same hours and have a better wage then having one full time job! (If you were lucky enough to get decent hours that combined with each other)

But nvm...more money is more money.

Oh and once your first job finshs you should payNI on your second.

I do not understand what you mean by this.

If NI is not payable on the second job now, why do you think it would be payable when the first job has ended (if otherwise the second job is not paying more than it does now)?