1.25% National Insurance Increase 2022

[Deleted User]

molerat said:

Diane06 said:

The payment is for period one 2022/23 paid on the 5th April. My salary falls into the Intermediate tax rate. 
I'm paid 12 monthly wages in arrears on the 5th of every month. I thought the additional 1.25% should not have applied until my next pay on the 5th May? I would accept the increase if I were paid in advance but I'm not. 
My question is how can my employer legally apply an increase in my NIC before the 6th April?

They should also not be paying you a 2022-23 tax year payment before 6th April.  If you don't want to play by the 22-23 NI rules you need to also play by the 21-22 tax rules which means you will need to pay tax on the £1049 extra tax free allowance you have received.  Your company really should sort out their paydays to tie in with the tax calendar and prevent this sort of problem.

Just occurred to me - under this daft scenario the op will also have one less month in this tax year to benefit from the lower limit uplift from ……….6th July. Normal payrolls will have nine pay days after this date - this one will have eight. They will pay around £30 more NIC than anyone else in 2022/23. (12570-9880) @13.25 / 12. 

I think that could cost Diane another £30 needlessly.

molerat

[Deleted User] said:

molerat said:

Diane06 said:

The payment is for period one 2022/23 paid on the 5th April. My salary falls into the Intermediate tax rate. 
I'm paid 12 monthly wages in arrears on the 5th of every month. I thought the additional 1.25% should not have applied until my next pay on the 5th May? I would accept the increase if I were paid in advance but I'm not. 
My question is how can my employer legally apply an increase in my NIC before the 6th April?

They should also not be paying you a 2022-23 tax year payment before 6th April.  If you don't want to play by the 22-23 NI rules you need to also play by the 21-22 tax rules which means you will need to pay tax on the £1049 extra tax free allowance you have received.  Your company really should sort out their paydays to tie in with the tax calendar and prevent this sort of problem.

Just occurred to me - under this daft scenario the op will also have one less month in this tax year to benefit from the lower limit uplift from ……….6th July. Normal payrolls will have nine pay days after this date - this one will have eight. They will pay around £30 more NIC than anyone else in 2022/23. (12570-9880) @13.25% / 12. 

They will still get 9, 5 Jul - 5 Mar as they apply the month a day early so will likely do the same for the threshold uplift.

[Deleted User]

molerat said:

purdyoaten2 said:

molerat said:

Diane06 said:

The payment is for period one 2022/23 paid on the 5th April. My salary falls into the Intermediate tax rate. 
I'm paid 12 monthly wages in arrears on the 5th of every month. I thought the additional 1.25% should not have applied until my next pay on the 5th May? I would accept the increase if I were paid in advance but I'm not. 
My question is how can my employer legally apply an increase in my NIC before the 6th April?

They should also not be paying you a 2022-23 tax year payment before 6th April.  If you don't want to play by the 22-23 NI rules you need to also play by the 21-22 tax rules which means you will need to pay tax on the £1049 extra tax free allowance you have received.  Your company really should sort out their paydays to tie in with the tax calendar and prevent this sort of problem.

Just occurred to me - under this daft scenario the op will also have one less month in this tax year to benefit from the lower limit uplift from ……….6th July. Normal payrolls will have nine pay days after this date - this one will have eight. They will pay around £30 more NIC than anyone else in 2022/23. (12570-9880) @13.25% / 12. 

They will still get 9, 5 Jul - 5 Mar as they apply the month a day early so will likely do the same for the threshold uplift.

How mad is that? Does this make up for the disadvantage at the start of the year? 🤷

chrisbur

molerat said:

Diane06 said:

The payment is for period one 2022/23 paid on the 5th April. My salary falls into the Intermediate tax rate. 
I'm paid 12 monthly wages in arrears on the 5th of every month. I thought the additional 1.25% should not have applied until my next pay on the 5th May? I would accept the increase if I were paid in advance but I'm not. 
My question is how can my employer legally apply an increase in my NIC before the 6th April?

They should also not be paying you a 2022-23 tax year payment before 6th April.  If you don't want to play by the 22-23 NI rules you need to also play by the 21-22 tax rules which means you will need to pay tax on the £1049 extra tax free allowance you have received.  Your company really should sort out their paydays to tie in with the tax calendar and prevent this sort of problem.

I have had no experience of RTI but from what I have read about it the employer has to give a pay date each month for their monthly figures.  If this is the case then does that mean the employer must have been giving a pay date at least one day ahead of the 5th of each month in order for that month's figures to tie in with the tax month?

molerat

I think OP needs to check their on line tax account to see when these payments are being declared as paid, I suspect it will be 6th.

[Deleted User]

chrisbur said:

molerat said:

Diane06 said:

The payment is for period one 2022/23 paid on the 5th April. My salary falls into the Intermediate tax rate. 
I'm paid 12 monthly wages in arrears on the 5th of every month. I thought the additional 1.25% should not have applied until my next pay on the 5th May? I would accept the increase if I were paid in advance but I'm not. 
My question is how can my employer legally apply an increase in my NIC before the 6th April?

They should also not be paying you a 2022-23 tax year payment before 6th April.  If you don't want to play by the 22-23 NI rules you need to also play by the 21-22 tax rules which means you will need to pay tax on the £1049 extra tax free allowance you have received.  Your company really should sort out their paydays to tie in with the tax calendar and prevent this sort of problem.

I have had no experience of RTI but from what I have read about it the employer has to give a pay date each month for their monthly figures.  If this is the case then does that mean the employer must have been giving a pay date at least one day ahead of the 5th of each month in order for that month's figures to tie in with the tax month?

RTI date is on or before the date of payment. If wages are prepared on the 25th, for example, to be paid on the last day of the month, the submission must be made on or before the 31st. But, in my experience, there is no way that 5th April pay date can be submitted as Month 1 - they must use 6th April or later on the submission but I am happy to be corrected.