National insurance tax

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jmclaugh

21-12-2016

Originally Posted by TheEngineer:
“Of course it works like that.

If you are paid at the end of each week and earn over £155 in that week you will pay National Insurance. If you earn nothing the week before you can't "average" the NI in the same way it does with Income Tax.

If you are paid at the end of the month and (for example) work a shift pattern than means you work 5 days in one week and 2 days in the next week but earn an average of £154 a week then you will pay no National Insurance.”

You now appear to be contradicting yourself and as I've already explained how it works I'll leave it there and you can believe it works however you like.

TheEngineer

21-12-2016

Originally Posted by jmclaugh:
“You now appear to be contradicting yourself and as I've already explained how it works I'll leave it there and you can believe it works however you like.”

Well there are 3 of us here who disagree with you.

Person 1 gets paid weekly and earns nothing in week 1 and £200 in week 2.

Person 2 gets paid fortnightly and earns nothing in week 1 and £200 in week 2.

Who pays the most National Insurance?

Oh and it is not a case of "believing what I want", it is how my staff get paid.

gemma-the-husky

21-12-2016

it's a catch with NI

NI is calculated on a weekly monthly basis, so if your earnings fluctuate you will pay more than if they didn't

when my son started work they paid him for 7 weeks on his first payslip/ I thought they should have paid him for 3 weeks in one month, and 4 in another, so he ended up paying more NI than he needed to, when he could hardly afford to

unique

21-12-2016

Originally Posted by TheEngineer:
“In effect you are both correct.”

no, he's wrong. he's not losing out

Quote:
“
It is an effect of the way NI is calculated and collected that someone on a zero hours contract paid weekly who earns £300 in one week and nothing in the next week will pay more NI than someone who gets paid fortnightly and does the same hours.”

http://forums.digitalspy.co.uk/showp...5&postcount=11

i mentioned earlier in the thread that if he was paid fortnightly but only had a weeks wage he would get 2 weeks NI allowance. being on a zero hour contract has absolutely no relevance to NI. it's what someone is paid and the pay frequency/period that counts. someone on a zero hours contract would pay the same tax for the same hours and rate of pay as anyone else if the pay was fortnightly

unique

21-12-2016

Originally Posted by jmclaugh:
“It does for the simple reason NICs are calculated on a weekly basis not fortnightly or monthly or annually. If it worked how you suggest then the OP wouldn't be complaining.”

NI can be calculated fortnightly or monthly if the pay frequency is fortnightly or monthly

so in some situations somone who works part time and infrequently may benefit from paying less NI if paid monthly rather than weekly

unique

21-12-2016

Originally Posted by gemma-the-husky:
“it's a catch with NI

NI is calculated on a weekly monthly basis,”

no, there's no such thing

Quote:
“

so if your earnings fluctuate you will pay more than if they didn't”

that's not necesarlily true. your wages can be static and you can either pay NI or not pay NI, and likewise your wages can fluctuate and you can either pay NI or pay no NI. it simply depends on how much you are paid in the pay period. if your pay is over the threshold you pay NI, if not then you don't

Quote:
“

when my son started work they paid him for 7 weeks on his first payslip/ I thought they should have paid him for 3 weeks in one month, and 4 in another, so he ended up paying more NI than he needed to, when he could hardly afford to”

had his wages been paid in the relevant months he could have paid less NI, but NI is based on the period it's paid in, so strictly speaking as the pay was all in one pay period, the NI due is correct. although the employer could have possibily split the NI liablity for the employees first pay, even if it was all paid together

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