NI below threshold

[hugebrain]

I just received a salary illustration for a six month minimum wage job that spans two tax years so the pay in each year would be less than the NI thresholds. The Umbrella is still taking off NI (twice) according to the illustration.

Is this right? Do the NI thresholds work on an annual or weekly basis?

Also, to get my state pensions contribution for the year, do I need to top up my pay a bit by giving myself a salary from my limited company?

[northernladuk]

You do know that if you copy 'Do the NI thresholds work on an annual or weekly basis?' in to google you'll get your answer?

[hugebrain]

You do know that if you copy 'Do the NI thresholds work on an annual or weekly basis?' in to google you'll get your answer?

Google says:

£123 per week £533 per month £6,396 per year

Which is as useless as you are.

What I want to know is which one applies, 123 per week or 6,396 per year?

If that’s not too much trouble.

[sadkingbilly]

Google says:

£123 per week £533 per month £6,396 per year

Which is as useless as you are.

What I want to know is which one applies, 123 per week or 6,396 per year?

If that’s not too much trouble.

both. hthbidi

[hugebrain]

both. hthbidi

So I have to pay NI for the weeks I work and then top it up so it totals £6396 over the year (but I don’t pay NI on this extra bit)?

[northernladuk]

Google says:

£123 per week £533 per month £6,396 per year

Which is as useless as you are.

What I want to know is which one applies, 123 per week or 6,396 per year?

If that’s not too much trouble.

Does it? The first thing I get is a paragraph which states

Sometimes you see the NIC thresholds given in annual amounts, as well as weekly or monthly amounts. However, you pay Class 1 NIC based on the amount you earn in each pay period, whether that is a week or a month. You do not pay Class 1 NIC based on your total earnings for the whole year.

and then a useful link covering all NI
https://www.litrg.org.uk/tax-guides/...20whole%20year.

[Fraidycat]

The rules are quite confusing and i cant guarantee what i am writing is correct:


My understanding is there is no annual threshold like income, it is weekly and per job.

So you can work 3 jobs in a week and pay 0 employee NI as long as you are below the weekly threshold in each job.

However for state pension purposes, they look at how much your earn't in total for the year per employer, you need to earn at-least £6,396 a year from one employer to get a qualifying year for state pension.

So i don't think topping up from Ltd will work, as that will count as a different employer.

[hugebrain]

They say “if you don’t have any more income for the rest of the year (do not hit the threshold) HMRC may refund the difference to you.”

May!? Will they or won’t they and what difference? Employers employees or both?

[hugebrain]

The rules are quite confusing and i cant guarantee what i am writing is correct:


My understanding is there is no annual threshold like income, it is weekly and per job.

So you can work 3 jobs in a week and pay 0 employee NI as long as you are below the weekly threshold in each job.

However for state pension purposes, they look at how much your earn't in total for the year per employer, you need to earn at-least £6,396 a year from one employer to get a qualifying year for state pension.

So i don't think topping up from Ltd will work, as that will count as a different employer.

Thanks for answering the question instead of just being snarky like the others.

So you think I should pay myself £6396 from my company. Then I will get the pension contribution and wont have to pay any NI because I’m a director.

I wont be able to claim back either type of NI from the umbrella in my tax return but I might be able to get some of the income tax back if there’s anything left of my personal allowance.

[Protagoras]

State Pension - multiple jobs

https://www.gov.uk/government/statis...-multiple-jobs