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National insurance contributions

(8 Posts)
Keepon123 Fri 08-Jun-18 10:49:03

Hi all,
On my payslip at end of May, although I earnt £100 extra for overtime (gross) I seem to have paid an extra £60 in NI A contributions than the month before where I earnt £100 less. With that and the tax it means I am only £13 better off than if I hadn’t worked the extra!
Has anyone else noticed an increase in their NI contributions? Have the government increased them?

Thanks

Furball Fri 08-Jun-18 16:22:39

I will confess I know nothing about this only in the fact that similar happens to me.

I am under the impression that the threshold for NI is lower than tax and then you pay NI on that payslips window at that time.

Last year I didn't earn over the tax allowance but paid NI

Furball Fri 08-Jun-18 16:25:11

The NI threshold is about £8500

TalkinPeece Fri 08-Jun-18 16:31:59

That sounds odd
NI is at 12% of earnings over 162 per week
it cannot be at a higher rate than that

Tax is at 20% of earnings over £11850
if your taxcode is M1W1 then the overtime could have pushed more of your earnings into tax
but it will revert next pay slip

Have you been hit for auto enrollment pension ?

AlexanderHamilton Fri 08-Jun-18 16:35:51

that sounds odd unless you are a high earner & the £100 tipped you over a threshold.

TalkinPeece Fri 08-Jun-18 16:43:21

but NI DROPS at the top end, not goes up

BigPinkBall Sun 10-Jun-18 08:07:32

NI is not averaged over the year like income tax is, so if you earn over the threshold in one pay period then under the next you’d pay more NI than if you were paid the same for both pay periods and you can’t get a refund.

I was fuming as I paid £200 more NI when I was on maternity leave than I would have if they’d spread my pay evenly over the 12 months rather than paying me 90% for the first 6 weeks then 33 weeks of saturory mat pay then 13 weeks of nothing. My baby was born on 6th April so it went exactly over the financial year.

I wrote to my MP and was told it would be too much of a burden on business to average it over the year like income tax, so tough.

CrawfordE Wed 13-Jun-18 20:10:40

Just to add, the National Insurance rate does in fact drop to 2% on earnings above the higher rate of income tax (£46,350) though the income tax rate at this point increases from 20% to 40%. Earnings above £150,000 are taxed at 45%.

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