NI overpayment ?
in Pensions, annuities & retirement planning
2 replies 147 views
My salary for this tax year (approx £10500) kept me just below the threshold for ni deductions. This salary included a backdated uplift which was paid in Decembers wage and because it exceeded my ni for that month i was deducted £59 ni. Is this correct or do i need to claim it back and from who?
Latest MSE News and Guides
Martin and MSE campaign win
April's 20% energy price guarantee hike postponedMSE News
Childcare budget boost
More support for children from nine months and those on Universal CreditMSE News
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
NI tax is calculated differently to Income tax (IT).
Income tax is easy to understand as its an annual allowance i.e. in a tax year if you earn £12,570 or less you pay no IT
NI tax is not calculated on an annual basis, its done on a time period i.e. weekly, fortnightly, monthly etc... so if your paid monthly and if you are paid over £1,048 in that month, you will have to pay NI
Its done this way because Income Tax is charged not on just your salary, the government will also take into consideration things like Savings, Pensions, Property etc.. While NI is not charged on these things.
I'm sure someone more clearer than me will post the correct answer in the next few minutes (i'm off to refill my whiskey).