Tax/National Insurance Threshold 3 July 2022 at 6:30PM in Employment, jobseeking & training 9 replies 224 views

foster777

Hi everybody

Just looking for a bit of advice or to answer a question 

How come when the National Insurance or the Tax threshold increases my wages or what I come out with from my employer stays the same. This has been this way for 20 years I never see any benefits to a Tax threshold increase or National Insurance threshold increase. 

Thanks 

Dazed_and_C0nfused

Have you got a net pay agreement where you are entitled to £x net pay each pay day?

foster777

Not that I know of or have been told about 

Dazed_and_C0nfused

It's not that uncommon with nannies.

https://www.nannymatters.co.uk/advice-centre/why-you-should-agree-a-gross-pay-rate-instead-of-net/

foster777

Thanks for the link, Very interesting and nothing i knew about. I'm just confirming if I'm on Net pay with my employer if he gets back to me 

foster777

My Employer says that all Employees are automatically on net pay and that i would have had to send in my own tax forms etc had i been self employed. Does this sound correct ?

foster777

Which I guess means he's  saying only the self employed benefit from Tax and National Insurance threshold rises ?

Dazed_and_C0nfused

foster777 said:

My Employer says that all Employees are automatically on net pay and that i would have had to send in my own tax forms etc had i been self employed. Does this sound correct ?

It's not true that all employees are on net pay schemes.  

Not sure what self employment has to do with this?

chrisbur

Do you have a written contract or terms and conditions that says anything about your pay?

General_Grant

Dazed_and_C0nfused said:

foster777 said:

My Employer says that all Employees are automatically on net pay and that i would have had to send in my own tax forms etc had i been self employed. Does this sound correct ?

It's not true that all employees are on net pay schemes.  

Not sure what self employment has to do with this?

I think the OP meant his employer said all their employees were on net pay arrangements, not that every person who is employed is.

The self-employment reference is that the OP is an employee because their employer is dealing with appropriate tax and NI to bring about the consistent nett pay amount. 

However, unless the OP were on a high salary, to have been on the same net pay for 20 years seems not to have taken account of increases in NMW in that time as NMW has more than doubled in that time.