N.I. contributions.

traceyaj

My hubby works part time 18.5 hours per week and is paid monthly. If he works a month with no overtime he pays no N.I. ( £818.75 gross pay) basic.
He frequently does work overtime and sometimes pays varied amounts of N.I. on these occasions. This month he received backpay and paid more N.I. than usual. 
The question is , will the contributions be adjusted in the coming months to take account of the fact that he has in theory unused allowance during previous months. i.e. the months where he has no overtime or backpay ?  

General_Grant

traceyaj said:

My hubby works part time 18.5 hours per week and is paid monthly. If he works a month with no overtime he pays no N.I. ( £818.75 gross pay) basic.
He frequently does work overtime and sometimes pays varied amounts of N.I. on these occasions. This month he received backpay and paid more N.I. than usual. 
The question is , will the contributions be adjusted in the coming months to take account of the fact that he has in theory unused allowance during previous months. i.e. the months where he has no overtime or backpay ?  

Income Tax is adjusted for what is earned in the whole year but NI doesn't work like that.
As he has found, NI is deducted at the time the payment is made.  It is not re-calculated as time passes.  (There is no theoretical annual allowance.)

molerat

NI is deducted on a per pay packet basis.  There is no adjustment for differing pay amounts like there is with tax. Calculating NI differently is only done when a pay packet covers more than 1 normal pay period such as 2 months pay then each month would be calculated separately