Taxed as a student - NI Contracted I?

Lavace

Hi all,

I am a full-time student. I work as a catering assistant whilst studying and work full-time during the holiday periods. My hours are ~35 a week, and occasionally up to 60 a week (only had 2 of these in one month).

I have attempted to research and search forums, but I haven't found solid answers to my questions.

Here are some examples:

1) I have a pay slip from two months ago or so. Under 'Deductions', what is this 'NI Contracted I' tax? And then under the 'Cumulatives' section 'Employees NI' and 'Employers NI', am I able to claim this back?

2) I've a payslip from one month ago, where I earned almost the same, yet, why is the 'NI Contracted I' tax suddenly so much higher?! Looking at last years payslips with equivalent pay, it was only 1/3 of the value!

3) Any ideas why I am being refunded directly tax FROM my employer? (only happened once)

I understand I will need to call HMRC and my employers HR in order to get an official answer, but I'd like to know what I am talking about.

The online calculator from HMRC states I needn't pay any tax at all!

Any help is highly appreciated!

Caz3121

NI is deducted in each week that you earn over the threshold (think it about £140) if you earn under in a particular week you will not pay it
NI is not like tax where you would have an annual allowance and reclaim if you only worked part of the year so you end up paying too much. NI is non-refundable it is due each week you earn over the amount

I assume it was tax that was refunded by your employer, this could happen as, on PAYE, there will be a regular calculation made on income and tax due year to date v's tax paid year to date.

CLAPTON

one needs the actual figures to be able to help

John_Pierpoint

If you were to work on a self employed basis, you would pay a very small weekly Class 2 National Insurance, every week of the year unless you can clearly see that you will be earning very little, in which case you can opt out. [Small earnings exemption: annual profits....are expected to be less than £5,725]
At the end of the year, if you exceeded the limit you would then pay Class 4 NI bearing in mind that you would not have an employer chipping in on your behalf.
You pay 9 per cent on annual profits between £7,755 and £41,450 (2013-14)
Why am I mentioning this?
I am not advocating that you go to your boss and say "I am self employed", as to be self employed you have to deliver something uncertain preferably on time within specification for a prearranged price, and for more than one customer.

However, as a student you will be emerging from your higher education into an economy, suffering from the Japanese disease - gone "south" per citizen since 2008 - where you might be offered an "internship" or a zero hours contract, so you and your fellow students would be well advised to understand all these options.

xylophone

http://www.hmrc.gov.uk/students/work_in_term_and_hols_9_1.htm
might be worth a look.