national insurance - is it taxable

aah · 3 May 2009 at 9:13PM

Hi folks

do I pay tax on my NI contributions or are they tax free - like my pension conts?

Spider-Man · 3 May 2009 at 9:16PM

You do not pay any tax on any NIC's, regardless of what class of National Insurance you are subject to.

Cook_County · 3 May 2009 at 11:16PM

aah wrote: »

Hi folks

do I pay tax on my NI contributions or are they tax free - like my pension conts?

They are not pre-tax so come out of gross pay.

aah · 3 May 2009 at 11:38PM

thanks both for replying, erm am I dim or do these replies contradict each other,

I jusui wanted to know if I pay tax on my ni contributions, do I take them off the top of my pay before applying the tax codes, and tax rates, or does the taxable pay include the NI contribs.

Sorry for not following, and thanks again for replying.

Yours
A.

Debt_Free_Chick · 3 May 2009 at 11:43PM

They ARE taxable. Your income tax is based on your gross pay. You then deduct your personal allowance and calculate income tax on the balance.

If you pay pension contributions to an occupational scheme, under the net-pay arrangement, you deduct your pension contributions from your gross pay, then your personal allowance and calculate income tax on that figure.

If you pay pension contributions to a personal/stakeholder pension, those contributions come out of your net pay, after income tax (and NIC) have been deducted.

national insurance - is it taxable

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