NI Calculations

[psychocandy]

I know NI is a little different to tax calculations isn't it? With tax if you pay too much one week/month then it generally levels out next time - so you still pay the same over the year.

Isnt NI different? i.e. based on that particular week/month and no levelling out?

On this basis, what would be better, 5 days one week, 0 days the next week, or 4 days one week, 1 day next week pay?

[northernladyuk]

I know NI is a little different to tax calculations isn't it? With tax if you pay too much one week/month then it generally levels out next time - so you still pay the same over the year.

Isnt NI different? i.e. based on that particular week/month and no levelling out?

On this basis, what would be better, 5 days one week, 0 days the next week, or 4 days one week, 1 day next week pay?

[barrydidit]

Why?

Are you trying to work out the most tax efficient way to organise your trip to Disneyland this year?

[psychocandy]

Why?

Are you trying to work out the most tax efficient way to organise your trip to Disneyland this year?

^Disneyworld - to spend my job seekers money

[northernladuk]

It's lucky you don't have to think to breathe.

[MrMarkyMark]

I know NI is a little different to tax calculations isn't it? With tax if you pay too much one week/month then it generally levels out next time - so you still pay the same over the year.

Isnt NI different? i.e. based on that particular week/month and no levelling out?

On this basis, what would be better, 5 days one week, 0 days the next week, or 4 days one week, 1 day next week pay?

[ContrataxLtd]

I know NI is a little different to tax calculations isn't it? With tax if you pay too much one week/month then it generally levels out next time - so you still pay the same over the year.

Isnt NI different? i.e. based on that particular week/month and no levelling out?

On this basis, what would be better, 5 days one week, 0 days the next week, or 4 days one week, 1 day next week pay?

Go on I'll bite

NI is calculated by reference to your pay period (which for yourself I believe is weekly) and therefore each week you receive 1/52 of the annual NI allowance tax free and this equates to the first £157 being free of NI. If you don't get paid in a pay period you can't carry forward the unused allowance, it is wasted, because unlike tax NI allowances aren't cumulative (other than for directors).

In your example you would probably be better off having 4 days and 1 day rather than 5 & 0 because in the later you don't get paid in one week so lose out on that amount on NI tax free.

HTH

Martin
Contratax Ltd

[washed up contractor]

I know NI is a little different to tax calculations isn't it? With tax if you pay too much one week/month then it generally levels out next time - so you still pay the same over the year.

Isnt NI different? i.e. based on that particular week/month and no levelling out?

On this basis, what would be better, 5 days one week, 0 days the next week, or 4 days one week, 1 day next week pay?

Dear Lord

[northernladyuk]

Go on I'll bite

NI is calculated by reference to your pay period (which for yourself I believe is weekly) and therefore each week you receive 1/52 of the annual NI allowance tax free and this equates to the first £157 being free of NI. If you don't get paid in a pay period you can't carry forward the unused allowance, it is wasted, because unlike tax NI allowances aren't cumulative (other than for directors).

In your example you would probably be better off having 4 days and 1 day rather than 5 & 0 because in the later you don't get paid in one week so lose out on that amount on NI tax free.

HTH

Martin
Contratax Ltd

You do know you're just enabling his learned helplessness.

[psychocandy]

Go on I'll bite

NI is calculated by reference to your pay period (which for yourself I believe is weekly) and therefore each week you receive 1/52 of the annual NI allowance tax free and this equates to the first £157 being free of NI. If you don't get paid in a pay period you can't carry forward the unused allowance, it is wasted, because unlike tax NI allowances aren't cumulative (other than for directors).

In your example you would probably be better off having 4 days and 1 day rather than 5 & 0 because in the later you don't get paid in one week so lose out on that amount on NI tax free.

HTH

Martin
Contratax Ltd

Cheers martin - thanks.