NI contributions ceiling?

[paulmakin]

A basic question but i can't find anything definitive using the normal searches, including on My HMRC or whatever it's called

Is there a limit on NI contributions, regardless of income?. In years gone by I know that i have claimed and received refunds as i had multiple employers and total contributions exceeded what i assume was a maximum.

I'm returning to some employment over the summer months but quite keen not to pay more than i should (or at least to know if i should be attempting to claim a refund at years end). if it matters, it'll be short term rolling contract but definitely an "employee"/PAYE

[Simpo Two]

Do you mean Class 2 for state pension or something else?

[Noise Allowed]

I think the NI rate for employees above the upper limit was introduced back in 2003. Before then, there wasn’t any NI to pay for the portion of your salary above a certain amount.

[snuffy]

https://www.gov.uk/national-insurance-rates-letter...

So roughly 8% upto 5k a month, then 2%.

If you had 3 jobs, each paying 5k a month, each employer would deduce 8%, because of course, they look at you in isolation. But actually you only pay 8% on the first 5k, and 2% on the remaining 10k.

Is that what you mean?

[Somebody]

snuffy said:

If you had 3 jobs, each paying 5k a month, each employer would deduce 8%, because of course, they look at you in isolation. But actually you only pay 8% on the first 5k, and 2% on the remaining 10k.

That's correct in theory, but if you try claiming back the "excess" which I tried, HMRC will tell you that each calculation/deduction is correct, and will refuse your claim.

[Mogul]

NI works differently to Income Tax (your allowance / the thresholds are applied weekly/monthly with no cumulative roll up.



The complexity is one argument in favour of ‘abolishing’ it, but to balance the books, income tax will be managed accordingly.

[snuffy]

Mogul said:

NI works differently to Income Tax (your allowance / the thresholds are applied weekly/monthly with no cumulative roll up.
.

They are indeed applied weekly/monthly as opposed to yearly fir income tax.

But that's not the same as exceeding the upper threshold.

[paulmakin]

thanks all - clearer now