Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • morgan1994
    • By morgan1994 16th May 18, 3:38 PM
    • 1Posts
    • 0Thanks
    morgan1994
    National Insurance query
    • #1
    • 16th May 18, 3:38 PM
    National Insurance query 16th May 18 at 3:38 PM
    Hi there,

    I was just wondering if I could get some advice/ information on NI.
    I earnt 14,572 in the tax year 2016-17 (gross) and I paid 912.06 NI.
    I queried this with HMRC; after checking three online calculators, they all said I should have paid 781.
    HMRC got back to me saying that the deductions were correct- because I was paid weekly and my pay fluctuated I pay more NI...

    Is this correct?
Page 1
    • marliepanda
    • By marliepanda 16th May 18, 3:40 PM
    • 5,626 Posts
    • 11,833 Thanks
    marliepanda
    • #2
    • 16th May 18, 3:40 PM
    • #2
    • 16th May 18, 3:40 PM
    Hi there,

    I was just wondering if I could get some advice/ information on NI.
    I earnt 14,572 in the tax year 2016-17 (gross) and I paid 912.06 NI.
    I queried this with HMRC; after checking three online calculators, they all said I should have paid 781.
    HMRC got back to me saying that the deductions were correct- because I was paid weekly and my pay fluctuated I pay more NI...

    Is this correct?
    Originally posted by morgan1994
    Yes. NI is charged weekly, unlike tax which ends up being averaged over the year.
    • agrinnall
    • By agrinnall 16th May 18, 4:16 PM
    • 20,143 Posts
    • 15,870 Thanks
    agrinnall
    • #3
    • 16th May 18, 4:16 PM
    • #3
    • 16th May 18, 4:16 PM
    It has been stated in another thread (although not verified as far as I'm aware) that there is a maximum amount of NI contributions that can be taken in a year at the standard 12% rate, but as your deductions are nowhere near that amount it won't help you.
    • chrisbur
    • By chrisbur 16th May 18, 7:06 PM
    • 2,907 Posts
    • 1,558 Thanks
    chrisbur
    • #4
    • 16th May 18, 7:06 PM
    • #4
    • 16th May 18, 7:06 PM
    Hi there,

    I was just wondering if I could get some advice/ information on NI.
    I earnt 14,572 in the tax year 2016-17 (gross) and I paid 912.06 NI.
    I queried this with HMRC; after checking three online calculators, they all said I should have paid 781.
    HMRC got back to me saying that the deductions were correct- because I was paid weekly and my pay fluctuated I pay more NI...

    Is this correct?
    Originally posted by morgan1994
    It is correct up to a point but has been a bit over-simplified.

    You get an allowance before NI is due, for weekly paid employees it was 155 for 16/17. Each week your earnings have this 155 ignored for NI and you pay 12% of your earnings above that. So if your earnings had been spread out equally over the year you would have paid about 15 weekly. This is what the calculators you used assume, that your yearly earnings are spread out evenly or at least fairly evenly.
    In fact as long as your earnings are always at or over 155 for every week of the year then the NI that is due will stay the same as the calculators give; the problem arises if your earnings fluctuate to an extent that some weeks you fall below the 155 figure or perhaps you have no earnings for some weeks. You then in affect loose that part of your allowance that your earnings fall below 155 or all of that week's allowance if you have no earnings. Any extra you earn in later weeks for example some overtime still only gets the 155 allowance so that extra has 12% NI deducted.

    The difference that you have does suggest that you had quite a big variation with several weeks falling below the 155 or possibly several weeks when you had no income. Perhaps you started part way into the tax year.
    Only way to really check your NI is if you list each week.

    Also is it possible that sometimes you were paid late eg two weeks' wages paid together as there are special rules for this.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

441Posts Today

5,573Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin