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National Insurance deduction

As we are now in Month 12 I have had any unused holiday as salary. This now means this month alone I have paid £145 in National Insurance. The other 11 months I didn't earn enough to pay NI. My total earnings for the year are £9450 so why did I have to pay all that NI for month 12?

Comments

  • chrisbur
    chrisbur Posts: 4,296 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    National insurance deductions are calculated on earnings paid in each earnings period.  So for any month you earn less than £792 you pay no NI and any month you earn over £792 you pay 12% of the part that is over £792.
    Regarding the months you did not pay providing that your earnings for those months are at least £520 you will have been treated as having paid NI even though none was paid, 
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