National Insurance

RAFMAC

Trying to help out my daughter but not getting very far with HMRC or the accounts department that pay her wages.

When I used online calculator on the web site (lives in Scotland), 22 year old.

It says she should pay £390 N.I. however she has paid £622.35.

I know the first £1048 every month is deducted from gross pay the remainder is subject to NI percentage 12% for first 9 months then 10% last 3 months 2023/24 tax year.

Her NI payments for the 9 months she paid is correct but hasn’t taken into account her first 3 months where she earned less than £1000.

Is that how it works?

2023/24

Gross pay  £15,960.71      PAYE £692.20       N.I. £622.35 

Tax month 12   gross pay  £1871.15 - £1048 = £823.15 = NI £82.31  (10%)

Tax month 11   gross pay  £1379.40 - £1048 = £331.40 = NI £33.14  (10%)

Tax month 10   gross pay  £1949.31 - £1048 = £901.31 = NI £90.13   (10%)

Tax month   9   gross pay  £1744.00  - £1048 = £696.00 = NI £83.52   (12%)

Tax month   8   gross pay  £1726.66  - £1048 = £678.66 = NI £81.44   (12%)

Tax month   7   gross pay  £1900.06  - £1048 = £852.06 = NI £102.24  (12%)

Tax month   6   gross pay  £1642.85  - £1048 = £594.85 = NI £71.38    (12%)

Tax month   5   gross pay  £1298.71 - £1048 = £250.71= NI £30.08   (12%)

Tax month   4   gross pay  £1448.80 - £1048 = £400.80 = NI £48.10   (12%)

Tax month   3   gross pay  £332.45         NI £0.00

Tax month   2   gross pay  £378.47         NI £0.00

Tax month   1   gross pay  £288.85         NI £0.00

Thanks for your help, if not in the correct area if someone can point me in the direction.

Graeme

Dazed_and_C0nfused

NI is calculated per pay period.

She cannot utilise unused elements from earlier months.

You have to do 12 separate calculations.  And the outcome will 99.9999% be what has been deducted.

Don't waste any more of your time on this.

la531983

NI doesn't adjust in year like tax does, it's worked out per pay period. The deductions are correct.

The online calculator you used will have assumed equal pay per month.