2nd job and Ni Contributions

AJC1

Can anyone advise me. My husband has two jobs in his first job he earned about £53000 gross and paid £1865.71 cat A national insurance and £2223.05 cat D contributions. His second job he does not get paid regularly as it is with the TA in the year 12/13 he earned £3596.62 and paid contributions cat A of £84.52. TA earnings above the primary threshold were £704.00.

I wrote to HMRC and they have advised me that he has not overpaid contributions. The calculation they have sent me is complicated but they have only based it on his cat D contribution figure.

In some months when he pays NI on his TA wage he has earned above the upper earnings limit in that month. Does the fact he pays Cat A and Cat D contributions on his main job make a difference ?

Can anyone please explain contributions and a second job and should I contact HMRC again and ask them to explain the calculation.

agrinnall

I'm not a NI expert, but reading from the HMRC website....

While what blodebubbles says is correct in the majority of cases, there are circumstances where NI can be regarded as overpaid and can be recovered. It's possible that your husband falls into one of these.

http://www.hmrc.gov.uk/ni/refunds-complaints/claimback.htm#1

OP, you really need to clarify your post, NI contributions have numerical categories not alphabetic, so Class 1, 2, 3, 4 (I'm not sure how far the list goes) rather than Cat A and D - do you really mean Class 1 and 4? If so I'm not sure that makes sense, as class 1 is paid by employees and class 4 by the self-employed - he can't be both in the same job.

agrinnall

blondebubbles wrote: »

Class 1 NI does have different category letters - https://www.gov.uk/national-insurance-contributions-for-employers/national-insurance-category-letters

Thanks for that, that's my "well you learn something new every day" for today :T.

PS Apologies for spelling your name wrong in my first post.

chrisbur

As has been said when calculated the NI is worked out per pay period rather than as an annual allowance like tax, but there is a maximum figure for the year which varies depending on your earnings. The figure varies because there is no upper earnings limit as there used to be, it now changes from 12% NI due to 2% NI due when the upper earnings limit is reached. This would mean that if the maximum had been paid in the main employment the second employment NI would be adjusted from 12% to 2% and the difference refunded.
I think it is unlikely in this case that the maximum has been paid as first you say "In some months when he pays NI on his TA wage he has earned above the upper earnings limit" which implies that some months were below the upper earnings limit and the calculation for the maximum assumes all months were above the upper earnings limit. Second when working out the maximum it is calculated on the basis of a 53 week year so the maximum would be 1/53 higher than you could possibly pay in 12 months salary.

If you would like to check it out the method is here....
http://www.hmrc.gov.uk/manuals/nimmanual/nim01163.htm
But you do need to use 12% and 2% where they say 11% and 1% as it is a bit out of date.

AJC1

Thanks for replying the problem I have with the calculation on the HMRC site is my husband pays class 1 conts but his category D contributions are at 10.6% and his category A at 12%. The calculation we got from HMRC does not seem to take into account his Cat A conts but I could be wrong.

AJC1

Thanks for replying the problem I have with the calculation on the HMRC site is my husband pays class 1 conts but his category D contributions are at 10.6% and his category A at 12%. The calculation we got from HMRC does not seem to take into account his Cat A conts but I could be wrong.

I forgot to say that it is only about 3 times a year that his monthly earnings exceed the upper earnings limit. Does this mean that because his earnings for the rest of the year don't exceed that he has to pay the 12% for those three months?

chrisbur

AJC1 wrote: »

Thanks for replying the problem I have with the calculation on the HMRC site is my husband pays class 1 conts but his category D contributions are at 10.6% and his category A at 12%. The calculation we got from HMRC does not seem to take into account his Cat A conts but I could be wrong.

I forgot to say that it is only about 3 times a year that his monthly earnings exceed the upper earnings limit. Does this mean that because his earnings for the rest of the year don't exceed that he has to pay the 12% for those three months?

The NI paid on the first job (always assuming that it has been done correctly) will stay as it is. The amount due is decided by the monthly figure not the annual figure. If any was due back it would be only from the second job and then only if the NI paid in the two jobs was greater than the maximum NI figure due. This maximum is based on what would be paid by someone earning at least the upper earnings limit for 53 weeks.

Without seeing the full details of the HMRC calculation I cannot really comment on that side of it.