NI free allowance yearly vs weekly

MattyHughes

hey,

I work variable hours each week, and over the year i may be not working (at uni) for several months.

So for income tax I know i can yearn up to £11,500 without paying anything. If my earnings this month mean I pay more now, then it will all be worked out next april to ensure i only pay tax on earnings above the personal allowance.

I was wondering if anyone could help me understand how this works for National Insurance. I understand you pay 12% on earnings above £157 per week. Is that absolute for every week? Or, like income tax, can your allowance be worked out over a month or a year?

Essentially from week to week I earn more than the £157 NI free allowance, however over the year my average earnings wont be much above that.

Thank you for your help

Darksparkle

National insurance is each pay period. It is not cumulative like tax.

00ec25

as above, it is not cumulative

if you are paid each week, then the first £157 of that week's wages are free of NI, anything above that will be taxed each week you get paid above that amount

your annual earnings, or any derived average from that figure, is irrelevant