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National insurance FAQ
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What NI category and percentage on £13.5k p.a.
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What NI category do I fall into and what percentage of NIC's do I pay if I earn £13.5k gross. |
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The vast majority of employees pay class 1 NIC's, some employees pay Class 3 NIC's voluntarily to make up their contributions over the year. There are three bands of NI, band 1 is NI free, band 2 is standard rate and band 3 is reduced rate. The NI bands change each year but the rates are fairly static. Get the current NI bands here. |
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Yearly paid NI
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Can National Insurance Contributions be calculated on a yearly basis as I earn more some months than others. By calculating the NI monthly I would pay less. |
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NIC's are calculated based on the frequency of your pay, if you were paid weekly then the NIC's would be calculated based on the weekly thresholds if paid monthly they would be based on the monthly thresholds. There are exceptions to this rule and they refer to directors who have special NI rules and none employees who pay tax and NIC's by self assessment at the end of the year. The name of the system of this type of payment and contribution is PAYE and is exactly what is says, you Pay As You Earn. To answer your question: in general, no you can't pay NIC's annually on periodic or fluctuating earnings. |
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