National Insurance rise

Jaco70

I'm a little unclear about what the NI rise means for my handful of employees. I have one who earns £ 31,000 and his NI contribution increased today from £ 49.92 pw to £ 54.32, but I heard on the radio this morning that anyone earning less than 34k won't pay any more over the whole tax year. It was something to do with a rise in the personal threshold in July.
Does that mean that this employee's NI will drop back to under £50 in July? I didn't totally understand it.

[Deleted User]

The amount that one can earn before they pay NIC will increase by around £3000 per annum in July meaning that they will pay roughly £7 less per week NIC from then compared to the present. The boffins have calculated that anyone earning less than £34000 will be better off. As an employer you will not benefit from the July changes. 

alembicbassman

NI is levied weekly or monthly depending on your payroll. You cannot think of it as an annual allowance like tax. I work 6 months of the year and earn 10-12K doing this being paid weekly. My employer takes NI over the threshold on every weeks pay.

[Deleted User]

alembicbassman said:

NI is levied weekly or monthly depending on your payroll. You cannot think of it as an annual allowance like tax. I work 6 months of the year and earn 10-12K doing this being paid weekly. My employer takes NI over the threshold on every weeks pay.

To be fair I think that the op is asking on behalf of his employees who, presumably, will not have irregular earnings.

Jaco70

[Deleted User] said:

The amount that one can earn before they pay NIC will increase by around £3000 per annum in July meaning that they will pay roughly £7 less per week NIC from then compared to the present. The boffins have calculated that anyone earning less than £34000 will be better off. As an employer you will not benefit from the July changes. 

Thank you. I was only interested in whether or not my employees lose out. I'm aware employers will be hit by it. Even though HMRC impose these increases, when wage packets go down its employers who tend to get it in the neck.

Jaco70

[Deleted User] said:

alembicbassman said:

NI is levied weekly or monthly depending on your payroll. You cannot think of it as an annual allowance like tax. I work 6 months of the year and earn 10-12K doing this being paid weekly. My employer takes NI over the threshold on every weeks pay.

To be fair I think that the op is asking on behalf of his employees who, presumably, will not have irregular earnings.

Thank you, yes that's right. My guys earn set weekly earnings, which may increase slightly if overtime is worked but this is rare.

Jaco70

Thanks for the replies. Sounds like they'll be hit for a few months, then get a slight uplift in TH pay. I'm pleased.