Is National Insurance based on weekly or annual earnings

advance

I have just had my wage slip for the month and have loads of NATIONAL INSURANCE deductions as my employer has paid me four months over time they owed me all in one go with my wages this month.

Will I have paid more than if they had paid my over time each month when I actually earn't it (trying to find previous wage slips at the moment to check)

Is it the same as Income Tax and at the end of the year they work it out on your earnings over the whole year

chrisbur

advance wrote: »

I have just had my wage slip for the month and have loads of NATIONAL INSURANCE deductions as my employer has paid me four months over time they owed me all in one go with my wages this month.

Will I have paid more than if they had paid my over time each month when I actually earn't it (trying to find previous wage slips at the moment to check)

Is it the same as Income Tax and at the end of the year they work it out on your earnings over the whole year

National insurance is calculated according to your normal earnings period, so if you are paid weekly it is calculated on each week's earnings, and if paid monthly on each month's earnings. Unlike tax there is no annual allowance (unless you are paid once a year) so if you had no earnings for a couple of months say there would be no NI rebate as there would be with tax. Also means if you use a tax calculator and put in your yearly earnings it will only give the correct answer if those earnings were spread fairly equally over the whole year.