National insurance

jennifernil

My husband is doing some work for his former employer and has a NI exemption certificate to send them (as he is 65). He is getting paid quite a lot for a short specialised job, does he not pay any NI at all no matter what he is paid?

And do his employers still have to pay something?

Because they are desperate for him to do this work, they are not making a profit out of what he does, they are paying him what they charge the client minus their "overheads". The "overheads" deduction is not very large, but all this has been agreed through his head office which is not in the UK. He is being paid through the UK office and they will deduct tax. So now he is wondering if he will lose another huge chunk to cover the employer's NI.

margaretclare

He doesn't pay NI after his 65th birthday, nor does a woman after her 60th birthday (at present).

Your husband should be paid the going rate for whatever the work is worth. He doesn't have to sell his skills and expertise for nothing.

HTH

Margaret

jennifernil

That's good to know he will not be due to pay anything,that was what I told him but he was not convinced!
Do you know if his employer will have to pay anything?

He is being very well paid per hour, but the job is only lasting 4 weeks, so not a huge amount overall. He just reckons his head office abroad has not taken the cost of any employers NI in UK into account, and "London" will be looking to cover it by reducing what they pass on to him.

LittleVoice

The employer stills pays employers NI.

jennifernil

Is there somewhere we could find out how much it will be?

Savvy_Sue

You could try either browsing round the HMRC website, pretending you're an employer, or phone your local office and ask.

However, if an employer has agreed a rate then they should not deduct THEIR NI contributions from it. If they didn't take it into account, really that's their problem. I don't think it's a 'huge' chunk anyway.

jennifernil

Thanks Sue, looking at the HMRC site I think it works out at just over 10% they will have to pay, but it's not that easy to work out.
He has a proposal in writing on the rate from Head Office, but London were supposed to provide the paperwork to sign, and they have done nothing, so he is worried. I hope they sort it soon, he has already done 3 weeks work!

sebastianj

Not sure if this is applicable, some employers do offer short term work on contract (self employed) basis to their former employees. Employees need to pay their own Tax and any NI due. This way your Husband can claim expenses and other things but will not be liable for any NI (65
seb