National insurance refund

kellysynara

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?

MattMattMattUK

kellysynara said:

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

 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

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

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

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.

[Deleted User]

kellysynara said:

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

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   

flaneurs_lobster

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   

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

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

flaneurs_lobster said:

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   

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