Another NI question

ggmf

Having 'retired' in June 2017, my NI contributions for 2017-18 meant that I was credited for a full year.

Aged 60, my forecast states that I am 5 years short for the maximum state pension that I can receive. With this in mind, in April 2018 I took a 2 day per-week part-time role. The salary is between the Lower Earnings Limit (LEL) of £116 per week and the Primary Threshold (PT) of £162 per week, so I pay no NI but will receive the credit for a full year.

I have been asked if I would consider doing a few more hours (0.5/1 day extra per week) however, this would push me over the PT of £162. So the question is: would I be deducted NI on the whole of my weekly salary or just have deductions from the amount over the £162? - It looks like I will be deducted the 13.8% on the amount above the £162. Correct? - thanks

greenglide

You only pay NI on the amount above the threshold so the amount will probably be trivial.


In the "old days" when the old stamps and cards were replaced by the earnings related NI you did pay NI on everything once you reached the earnings limit which was "unfortunate". This was really a hang over from the stamp days when a similar thing happened if your wages exceeds a certain point and you then paid the flat rate stamp.

ggmf

Many thanks, With my small DB pension and this part time role, I'll continue my punch up with HMRC to sort out my tax code now!

molerat

ggmf wrote: »

....... It looks like I will be deducted the 13.8% on the amount above the £162. Correct? - thanks

Only 12%, 13.8% is the employer contribution.