Are Employers National Insurance contribution allowances cumulative?

dlmcr

I work as a contractor through an umbrella company. I am contracted to be paid weekly and work a "normal" full time pattern 37.5 hours per week. The umbrella company pay me for this work at different intervals, sometimes one payslip every two weeks with 37.5hours x 2 weeks, sometimes one payslip once a month etc with all the hours, depending (I'm told) on when invoices for my worked hours are approved by my end client.

My umbrella company charge £27.50 per week for their services, so for 2 weeks they'll charge that twice, for three weeks they charge that 3 times etc. However I've noticed the £148 per week employers NICS threshold is the same figure regardless of how many weeks pay I get paid in one payslip, eg for two weeks pay, I get the same £148 threshold, three weeks pay I get the same £148 threshold. Surely threshold should be applied for each week worked, like employees NI and tax? The umbrella company have told me that Employers NICS are not cumulative.

I don't think this can be right although I can't find anything around this on HMRC website. Would someone be able to confirm or not, or point me in the direction of more info please? Thanks.

nomunnofun

National insurance, whether employees or employers, is never calculated on a cumulative basis

dlmcr

Interesting. Thank you.

nomunnofun

http://www.nibusinessinfo.co.uk/content/using-online-national-insurance-contributions-calculator-and-paper-form-p11

Under 'Information you'll need for the calculator'.

There is one notable exception applicable to company directors, probably not relevant to your circumstances.

jimmo

Cumulative has a specific meaning when dealing with Income Tax and, in that sense, National Insurance is non-cumulative.

However, in the context of your question, it is.

What matters in National Insurance is the Pay period and it seems to me that you have irregular paydays and therefore irregular pay periods.

Then, if your pay period is 1 week you get one week’s worth of threshold.

If your pay period is 2 weeks, you get 2 weeks’ worth, and so on.

Here’s the Instruction manual, note the final example.

http://www.hmrc.gov.uk/manuals/nimmanual/nim08100.htm

And here‘s the Employers Guide See para 62.

http://www.hmrc.gov.uk/guidance/cwg2chapter3.pdf