NI - does the upper 2% amount apply to annual earnings over the threshold?

[dollybird]

Last year and this year I received a bonus which took my monthly salary over the 2% threshold for NI, so I only paid 2% for the top portion of my months pay. My annual salary plus bonus is nowhere near the 2% threshold. Should I have paid 12% on all of it, or has it been done correctly? Am worried I'll get a letter further down the line saying I have to pay it.

Assuming you aren't a director of the company, NI is on a "pay-period" basis (rather than cumulatively like tax) so it sounds like it has been calculated correctly.

Definitely not a director! That's fantastic if that is correct - we can spend the money

The directors rules (where it is cumulative like tax) are so that you can't manipulate the payment of your income to have lots of v small pay-packets with v little NI and a few big pay-packets where you only suffer NI up to the weekly or months limit (and now only 2% over it). Thereby reducing your NI artificially because you are a director and can control the amounts and frequency of your payments.

In your case it is completely correct to do it on a pay period basis and you should enjoy your bonus :)

where's the like button?