We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

National insurance refund

Options
Hi,the last tax year I worked part time and earned just around 10k for the whole year. Some months I earned as little as 300 pounds and some others I earned 1300 pounds. At the end of the year I only reached 10k. The 3 months I earned around 1300 I got a deduction for National insurance. At the end I got my p60 saying my total earnings plus the national insurance deductions. I read that you don't pay national insurance if you did not earn £12,570 per year. I looked online and read that I could ask a refund to my employer. He refused saying the deduction was right. Is he?

Comments

  • MattMattMattUK
    MattMattMattUK Posts: 11,167 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    Hi,the last tax year I worked part time and earned just around 10k for the whole year. Some months I earned as little as 300 pounds and some others I earned 1300 pounds. At the end of the year I only reached 10k. The 3 months I earned around 1300 I got a deduction for National insurance. At the end I got my p60 saying my total earnings plus the national insurance deductions. I read that you don't pay national insurance if you did not earn £12,570 per year. I looked online and read that I could ask a refund to my employer. He refused saying the deduction was right. Is he?
    Yes, your employer is right. National Insurance is charged based on weekly earnings, there is no yearly threshold. Income Tax is charged on income over £12,570 (varies for a few people, not not relevant here), so Income Tax may have been refunded if you had paid more than was due, but there would be no refund for NI.
  • sheramber
    sheramber Posts: 22,448 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
  • la531983
    la531983 Posts: 3,099 Forumite
    1,000 Posts First Anniversary Name Dropper
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    Hes got confused between tax and NI.
  • MACKEM99
    MACKEM99 Posts: 1,060 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    From someone in the pub?😁
  • la531983
    la531983 Posts: 3,099 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 30 June at 11:10AM
    MACKEM99 said:
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    From someone in the pub?😁
    See above. 12570 is the annual lower earnings limit for INCOME TAX, NI is different and worked out per pay period its easy for someone not clued up on these matters to have made a mistake so maybe we need to cut them some slack.
  • Nomunnofun1
    Nomunnofun1 Posts: 673 Forumite
    500 Posts Name Dropper
    edited 30 June at 1:15PM
    Hi,the last tax year I worked part time and earned just around 10k for the whole year. Some months I earned as little as 300 pounds and some others I earned 1300 pounds. At the end of the year I only reached 10k. The 3 months I earned around 1300 I got a deduction for National insurance. At the end I got my p60 saying my total earnings plus the national insurance deductions. I read that you don't pay national insurance if you did not earn £12,570 per year. I looked online and read that I could ask a refund to my employer. He refused saying the deduction was right. Is he?
    You pay NI on any weekly payment which exceeds £242 or monthly payment which exceeds £1048 . 

    If you worked only one month in the tax year and earned £1200 you would pay £12.16 NI and receive no refund. Thems the rules!
  • molerat
    molerat Posts: 34,561 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 30 June at 2:12PM
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    https://taxaid.org.uk/tax-information/what-are-taxes/national-insurance    :o


  • flaneurs_lobster
    flaneurs_lobster Posts: 6,507 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    molerat said:
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    https://taxaid.org.uk/tax-information/what-are-taxes/national-insurance    :o
    How much do you pay?
    The rates can vary from year to year but they are based on a percentage of your income above certain levels (currently £12,570 per year, the same as the income tax personal allowance).

    It's technically correct but it really needs a bit more explanation of how & when it's actually deducted. Not the finest piece of work from a charity called Tax Aid which exists to give tax advice to lower-paid workers.

  • sheramber
    sheramber Posts: 22,448 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    MACKEM99 said:
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    From someone in the pub?😁
    Possibly but since he 'read' it it should be writtn down somewhere.  Hence the question.
  • sheramber
    sheramber Posts: 22,448 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    molerat said:
    sheramber said:
     I read that you don't pay national insurance if you did not earn £12,570 per year. 


    Can you provide a link to that?
    https://taxaid.org.uk/tax-information/what-are-taxes/national-insurance    :o
    How much do you pay?
    The rates can vary from year to year but they are based on a percentage of your income above certain levels (currently £12,570 per year, the same as the income tax personal allowance).

    It's technically correct but it really needs a bit more explanation of how & when it's actually deducted. Not the finest piece of work from a charity called Tax Aid which exists to give tax advice to lower-paid workers.

    a nice cop out

    https://taxaid.org.uk/home/disclaimer
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.