My NI contribs increased by miles since April!

techno12

Hi

According to all the tax calculators etc I ought to be around £20 up on the deal since the new "20% tax but higher NI threshold" changes came into effect, but I've just received my new payslip and I'm getting on for £20 down.

My tax has gone down by £25, but my NI has leaped by £42. The calculators implied that yes, the NI would go up, but the tax would go down by more that that, so I'd be better off.

Hmm..

Anyone know what NI table A is? My new payslip is suddenly showing this information - perhaps all the calculators are wrong, or I've been shifted onto some weird NI banding..or maybe I'm just in the sweet spot where the NI more than outweighs the tax

jem16

Without knowing any figures it is impossible to say.

If you earn over £18k you should be better off.

mitchaa

techno12 wrote: »

Hi

According to all the tax calculators etc I ought to be around £20 up on the deal since the new "20% tax but higher NI threshold" changes came into effect, but I've just received my new payslip and I'm getting on for £20 down.

My tax has gone down by £25, but my NI has leaped by £42. The calculators implied that yes, the NI would go up, but the tax would go down by more that that, so I'd be better off.

Hmm..

Anyone know what NI table A is? My new payslip is suddenly showing this information - perhaps all the calculators are wrong, or I've been shifted onto some weird NI banding..or maybe I'm just in the sweet spot where the NI more than outweighs the tax

If you earn more than £15000 PAYE you will be better off. There is no point in the earnings scale after that where you will be worse off.

A mistake has been made somewhere. What is your annual salary and ill do some calculations for you.

The thresholds were moved from £100-£105 lower and £670-£770 higher meaning...

Last year you paid NI at 11% on earnings between £5200-£34840 and then 1% after £34840
This year you will pay NI at 11% on earnings between £5460-£40040 and then 1% after £40040

So if you earn more than £35k ish you will see increases to NI but the tax decrease from 22-20% offsets this and more.

Have a play with this calculator and put in your details to see how it affects you
http://www.thesalarycalculator.co.uk/

chrisbur

techno12 wrote: »

Hi

According to all the tax calculators etc I ought to be around £20 up on the deal since the new "20% tax but higher NI threshold" changes came into effect, but I've just received my new payslip and I'm getting on for £20 down.

My tax has gone down by £25, but my NI has leaped by £42. The calculators implied that yes, the NI would go up, but the tax would go down by more that that, so I'd be better off.

Hmm..

Anyone know what NI table A is? My new payslip is suddenly showing this information - perhaps all the calculators are wrong, or I've been shifted onto some weird NI banding..or maybe I'm just in the sweet spot where the NI more than outweighs the tax

Do you know which NI table you were on last year. Changing from D to A for example could account for an increase in NI like this.

Table A is for employees who are in the state second pension.
Table D is for employees in a company pension scheme which is contracted out of the state second scheme.

Have there been any changes in your pension arrangements recently?

To check on the rates you have been paying can you advise a monthly salary figure and its NI figure for this year and last year?