Tax & NI query for the Mrs

[s111dpc]

The wife has two part time jobs. The first is as an employee doing care work earning £400/m. the second is as a self employed day centre worker earning also earning £400/m gross I.e. before allowance for expenses etc.

Based on these numbers I think she is below the personal allowance for tax but I’m confused as to where she stands on NI contributions. Firstly does she need to pay them, and if so, how does she do this, via PAYE with her employed income or does she need to do it via her self employed income?

Any advice or suggestions most welcome.

TIA

[Dixy]

Neither reaches the threshold and NI is not cumulative, its why her employers do it as 2 employees are cheaper than 1.
She should be aware that she is not adding to her NI pension years unless you have school age children this may be worth reviewing.

[s111dpc]

Thanks Dixy.

Her two jobs are with different ‘employers’ and we do have two children in full time education- one at Uni and one in 6th form - not sure if that counts as ‘school age’ these days!

[red_slr]

Lower earnings limit is £6032 for 18/19.

She needs to ensure that she is over that. You may have to do past years updates too which as a self employed person she can do via HMRC PAYE tool with the data off her SA302, if she is over the LEL.

[Eric Mc]

Tax is based an all income from all sources combined.

NI is calculated on a job by job basis.

[s111dpc]

Thanks all.

So on that basis she shouldn’t need to pay NI on either job as both come in below the LEL?

[Eric Mc]

If a single source of earnings is below the NI threshold, no NI needs to be paid.

HOWEVER, she may WANT to pay NI in order to keep her contributions record going. Does she?

[red_slr]

s111dpc said:

Thanks all.

So on that basis she shouldn’t need to pay NI on either job as both come in below the LEL?

Correct but if you don't tell them they wont give you NI credits. I found this out recently. Best thing to do is log into your state pension and see if all years are full.

[200Plus Club]

We had similar with the wife and she's bought an additional 5yrs by paying the NI contributions on a rolling basis. The .gov site is quite helpful to look at her state pension forecast and see what NI contributions she's made/missed. The additional 5 yrs makes quite a difference if you are below the threshold and bumps up the final pension