NI 1.25% reduced 6 November 14 October 2022 at 10:50PM in Cutting tax 3 replies 221 views

Workerbee999

I have read that the rate will be reduced from 6 November. I am on 4 weekly pay, a week in arrears. I will be paid 11 Nov relating to the 4 weeks ended 4th November.

Does the applicable rate depend on the date of payment or the period that it relates to?

Thanks 

Jeremy535897

At the rate of the current changes to the mini budget, it may well be that the rate does not get reduced in November.

Grumpy_chap

Workerbee999 said:

I have read that the rate will be reduced from 6 November. I am on 4 weekly pay, a week in arrears. I will be paid 11 Nov relating to the 4 weeks ended 4th November.

Does the applicable rate depend on the date of payment or the period that it relates to?

Thanks 

I understand it depends on the period it relates to rather than the date of payment.

If it was not like that, the system would be open to manipulation by those that have the ability to influence the date of payment, eg late submission of time sheets.

Plan on that and, if your employer administers it differently, that is a win for you.

chrisbur

Grumpy_chap said:

Workerbee999 said:

I have read that the rate will be reduced from 6 November. I am on 4 weekly pay, a week in arrears. I will be paid 11 Nov relating to the 4 weeks ended 4th November.

Does the applicable rate depend on the date of payment or the period that it relates to?

Thanks 

I understand it depends on the period it relates to rather than the date of payment.

If it was not like that, the system would be open to manipulation by those that have the ability to influence the date of payment, eg late submission of time sheets.

Plan on that and, if your employer administers it differently, that is a win for you.

Both PAYE and national insurance are usually calculated on the date payment is made....
Section 1.3 of 
https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2020-to-2021employer-further-guide-to-paye-and-national-insurance-contributions

"As a general rule, both National Insurance contributions and PAYE are operated when a payment of earnings is made to an employee."

As far as NI is concerned exceptions to this usually involve when a payment is made on a date other than when it would normally expect to be paid, which would not apply in this case.