NI and thresholds

[Deleted User]

Understand you get £162 a week before you pay NI. (so £19.44 saved in effect).

If you're paid weekly, if you have zero earnings in one week does this then mean that, in effect, you've lost that allowance then?

Example, got two weeks off work (its nhs bank agency work so you can submit accrued A/L whenever you want).

OK, not correct figures but say 20 hours leave at £16 an hour.

Are you better claiming 10 hours in each week. £160 pay per week?
Then you're not paying any NI.

If you claim it all (20 hours £320), am I right you'd be worse off because you're then over the NI limit of £162 so would pay (£318*12%) = £19 or so NI?

Or have I got this wrong?

Pennywise

Yes, you're right, NIC is calculated "per payroll period", not cumulatively like tax.

molerat

Payroll should be able to allocate to a 2 week pay period.

agrinnall

All the basics on NI can be easily found online, to save you the effort of doing a search here's the link.


https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

[Deleted User]

Seems employer has screwed up and I'm not sure if they are blagging it here.

Its my wifes employer. Previously, she was permanent monthly paid (until Dec 2017) then she went to temp work with the same employer (NHS bank) which is weekly.

The rules are, apparently, you stay on monthly NI calculation if you've worked monthly in the year but then switch over to weekly next financial year.

They forgot to do this is in April 2018 so its been stuck on monthly NI when it should have been weekly.

They are saying its the same but I'd like to check. I guess only way is to calculate NI manually for each payslip? Variable amounts each week.

00ec25

[quote=[Deleted User];74772334]Variable amounts each week.[/QUOTE]the NI allowance is expressed as a weekly figure, however, where the payroll period is monthly, the monthly value is simply the weekly value x 52 / 12


so without looking at her figures it would seem likely for someone on variable pay per week it would actually be advantageous to be kept as monthly because there is less chance she would have periods over or under the threshold


so don't assume payroll has mucked her up, they may actually have helped her for her 1st year.


weekly is £162
monthly is (162x52)/12 = £702



so if she had 2 weeks at £160 , 1 week at £0 and 1 week at £200 she would pay NI on £38, costing her £4.56 in NI


if that pay pattern had been paid as a monthly total £520 she would have paid NI on £0 costing her £0

[Deleted User]

00ec25 wrote: »

the NI allowance is expressed as a weekly figure, however, where the payroll period is monthly, the monthly value is simply the weekly value x 52 / 12


so without looking at her figures it would seem likely for someone on variable pay per week it would actually be advantageous to be kept as monthly because there is less chance she would have periods over or under the threshold


so don't assume payroll has mucked her up, they may actually have helped her for her 1st year.


weekly is £162
monthly is (162x52)/12 = £702



so if she had 2 weeks at £160 , 1 week at £0 and 1 week at £200 she would pay NI on £38, costing her £4.56 in NI


if that pay pattern had been paid as a monthly total £520 she would have paid NI on £0 costing her £0

I see what you're saying. They were supposed to move to weekly in April but I just want to be sure its not cost more because of the mistake.

EDIT: Actually yes its probably better because she gets full allowance every month and doesnt lose any weeks.

xylophone

Has she obtained a state pension forecast?

https://www.gov.uk/check-state-pension

getmore4less

Does that bank pay holiday as it accrues or pay when taken.

Makes a difference to NI payments

[Deleted User]

getmore4less wrote: »

Does that bank pay holiday as it accrues or pay when taken.

Makes a difference to NI payments

Leave gets accrued at something like 1 hr per 8.29 worked. Then you claim leave when you want.

Why does it make a difference?