National Insurance

[Papaleekie]

I have paid my required 30 years contributions for state pension benefit. I am in receipt of Company Pension, taken 10 years early. There is no NI deduction from pensions. I also have a part time job which is irregular hours. What is the monthly limit I can earn from my PT job before I am liable to pay NI. I understand that NI payments cannot be rebated.

[Ethel]

�90 per week

�360 per four weeks

�390 per calendar month

[Papaleekie]

Thanks Ethel, most helpful.

If I could just ask you to clarify: Are these figures gross or net of income tax? Also am I right in thinking that NI is calculated monthly and if paid in (say) May but not in June no
adjustment can be made retrospectively. Is it illegal if I hold back submitting my monthly pay claims in order to avoid paying NI contributions in a particular month?

Thanks again

[bimbo123456]

I imagine there would be a date on your wage slip so no point keeping back. NI is always calculated on gross wages. Sadly.

[dzug]

Yes you can hold back your claims if that results in them being paid later.

It's the date of payment that is relevant for NI, not the date earned.

[Papaleekie]

Grateful thanks to all respondents.

[Ethel]

Those are gross figures. :)

[kags]

It has been a while since I dealt with NIC so I hope I am remembering this correctly - but it is not strictly correct to say the period of earning is not relevant for NIC. If you hold back a claim and get paid for say 2 months' work in one month, the danger is that your employer will give you only one month's worth of earnings threshold, and therefore you will pay too much NIC. For irregular payments, your employer should use the exact percentage method, and apply however many week's or month's worth of earnings threshold apply to the earnings period - you would need to check carefully to make sure they had done this.

[Papaleekie]

As already mentioned, I have accrued my 30 years contributions. What happens to the 'overpayments' that I make when I earn over the monthly threshold? Do they go into the general pot, are are they specific to me and will result in an enhanced state pension when I reach 65 (in 7 years time)?