National Insurance

taxman1234

Hello... apologies if I've got this in the wrong place.

My wife ( 61) just retired early and will be receiving a NHS pension of £17500 per year.

She also will be receiving approx £2000 annually as "bank shift" working income.

So a total of £19500

I have transferred my marriage allowance to her so anything over £14100 is "taxable"

My question.... pension doesn't pay NI....but does the bank shift income?

And if so,is the NI contribution based on only the £2000 or all the money over the £14100 allowance?

Anyone able to work out what she would have to pay this coming year?

Thanks

NormalNorman

The bank shift income is below the NI threshold so £0

~£90pm in income tax.

Bit like with my second job, don't pay NI as below the threshold. If I got overtime on the main job I would but no overtime option. So in some respects works out better.

xylophone

Has she checked her state pension forecast?

https://www.gov.uk/check-state-pension

Marcon

The bank shift income is below the NI threshold so £0

Not necessarily - depends when she earns the £2,000 in question. If she earns over the NI threshold in any pay period, she'll pay NI (non-reclaimable) regardless of her income in the tax year. https://www.gov.uk/national-insurance/how-much-you-pay

mrklaw

can you choose which income is your ‘first’ income? or is NI only on ‘earned’ income so would ignore the NHS pension?

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82021535#Comment_82021535

Ni isn't payable on pensions.

taxman1234

Thanks for all the replies....will keep a wee eye out on her payslips to see what deductions are .