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national insurance - is it taxable

aah
aah Posts: 520 Forumite
Hi folks

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

Comments

  • Spider-Man
    Spider-Man Posts: 7 Forumite
    You do not pay any tax on any NIC's, regardless of what class of National Insurance you are subject to.
  • Cook_County
    Cook_County Posts: 3,092 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    aah Posts: 520 Forumite
    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
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    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.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
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