NI On Leaving Pay

Kentishphotographer

After 3 years of sick leave, my employer finally terminated my contract.

I was given two months wages and some owed holiday which amounted to just over £4000, and from which I paid the 12% in National Insurance

I am currently unemployed and on ESA (not fit to work) so this £4000 were my only earnings this year - should I have paid the National Insurance, despite being below the earnings threshold?

Or is it simply taxed on a monthly basis?

Thanks.

molerat

NI is charged on a per pay packet basis. There could be a case for it being spread across a longer period so having x weeks / months allowance set against it.

Kentishphotographer

molerat wrote: »

NI is charged on a per pay packet basis. There could be a case for it being spread across a longer period so having x weeks / months allowance set against it.

Thanks for replying.

If it's charged per pay packet, even a one off, then I assume it was correctly taken, regardless of me not reaching the annual earnings threshold (around £6000, I can't remember the exact amount).