NI Contributions for Students

ceminem

Hi,

I started working full time in June to gain some funds for my final year in uni. I filled out a p38(s) which meant I wouldn't pay tax until the 4985 threshold has been reached.

I noticed on my payslips I am being deducted NI.

Can anyone clarify that I am required to pay this?

Thanks

Rikki

I can't help but I'm interested in the answer on behalf of my 16 year old who is working during this summer break before sixth form.

stuwilky

The simple answer is yes.

You are required to pay NI contributions where applicable.

DilbertJones

If you dont pay enough NI contributions, they you will not be entitled to Job Seekers Allowance if you ever need it. Also Statutory Maternity Pay may not be awarded.

The former happened to my Girlfriend and caused us some distress

Murtle

NI is paid on earnings. Depending on how much you earn, depends on the amount. It's not like tax which is worked out cummulatively. If you have an NI number you pay it! (or not if you earn too little.) one way of too little, you don't get anything, the next level up, you get a *contribution* to your account.

telly-addict

Rikki wrote:

I can't help but I'm interested in the answer on behalf of my 16 year old who is working during this summer break before sixth form.

Class 1 National Insurance Contributions go towards your state pension entitlement, the additional state pension 'SERPS' or from April 2002 the second state pension. Also Incapacity Benefit, Jobseekers Allowance, and some Bereavement Benefits

Payable from age 16 to 60 (women) and 65 (men).

Lower earnings limit £82/week
Primary Threshold £94/week
Upper earnings limit £630/week
Rate up to primary threshold 0% (yes zero)
Not contracted out rate 11% on £94.01 - £640 per week
1% on excess over £630

Earnings from £82 per week 'Lower Earnings Limit' up to and including £94 per week 'Primary Threshold' will count towards the employee's basic flat rate state pension even though no contributions are paid on those earnings.

Ceminem: if you are being paid more than £94 per week, then you are correctly paying NIC.