National insurance on earnings below tax threshold

Found 2nd May 2008
Hi there - does anyone know if you pay NI on your earnings even if they are below your personal tax threshold? I recently left my job and on my p45 it shows NI contributions - just wanted to check this was correct.

Rep for any help.

Many thanks

6 Comments

Hi I am not realy an expert but the way I think it woeks is that is independant of your TAX. If you warn over a limit (determined weekly) you pay 11% of the :
11% of ( {weekly earnings} MINUS the {Lower Limit} )
and there is a upper limit and any earnings over that is only 1% (usually similar earnings as the 40% TAX band)

Hope this helps.

Thanks.

Roy

You pay national insurance whatever you earn so long as your working is my understanding. It's cheaper if you are self imployed though, only £28.8 a quarter.

If you are below the Ni threshold limit, you don't have to pay NI contributions and can ring up for a National insurance excemption certificate. However it is sometimes worthwhile paying voluntary n.i. insurance contributions to keep your pensionable years up. You have to have a minimum number of years contribution to get a state pension. If I was you, I would ring up and request a state pension forecast to see how you stand and then you can ring them up to discuss whether it is worth paying contributions. There are so many factors to take into account, such as if your children are under 16, you may get years credited under home responsibilities, depends on how many years you have worked and plan to work. Even if you have years to go until pension age, it is really worth making a wise choice now. They even tell you if you can pay extra funds to make up a year, for example if you left before the end of the financial year, you don't get that year credited unless you make up the shortfall-which is sometimes only a few pounds.

Banned

stccalculator.inlandrevenue.gov.uk/Use…spx

use that to see if you are entitiled to a refund and then go down to the tax office fill out a form (take bank details too) and they'll put the money into ur account!

sorry this is only for tax. you are entitled to a refund on NI and normal people will satisfy the NI contribution years once they join full time work so dont worry about lossing a year here... you'll make up for it later on

Banned

badgerrules;2012898

You pay national insurance whatever you earn so long as your working is … You pay national insurance whatever you earn so long as your working is my understanding. It's cheaper if you are self imployed though, only £28.8 a quarter.



this is wrong information.

Original Poster

imranmaz;2012932

http://stccalculator.inlandrevenue.gov.uk/UserDetails.aspxuse that to see … http://stccalculator.inlandrevenue.gov.uk/UserDetails.aspxuse that to see if you are entitiled to a refund and then go down to the tax office fill out a form (take bank details too) and they'll put the money into ur account!sorry this is only for tax. you are entitled to a refund on NI and normal people will satisfy the NI contribution years once they join full time work so dont worry about lossing a year here... you'll make up for it later on


Many thanks - i'll look into it further then. I have three children under 16 at the mo so not too worried about missing contributions. As you say, it will be made up when I return to work. Thanks everyone for your replies.
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