National Insurance on second job.
Discussion
Have just started a second, part time job for over the festive season. (tried the search with no luck for this)
Got my first payslip, tax code is BR which is correct as my allowance is used in my first job.
I was expecting a NI deduction from my wages but do these only get deducted from your main employment ?
Got my first payslip, tax code is BR which is correct as my allowance is used in my first job.
I was expecting a NI deduction from my wages but do these only get deducted from your main employment ?
Edited by BMR on Saturday 18th December 18:07
NI is calculated on a job by job basis. If the salary from the second job is lower than the NI Lower Earnings Limit (currently £97 per week) then you will not be charged NI on that job.
Income Tax is calculated on all your income from all sources, so you only get one tax allowance to cover all that income. Although we tend to look on NI as just another tax, in principle it isn't and does not follow normal taxation practice.
In theory, if you had ten salaried jobs all paying you a gross salary of £4,000 per annum, (i.e. £40,000 in total), you wouldn't pay a penny in NI.
Income Tax is calculated on all your income from all sources, so you only get one tax allowance to cover all that income. Although we tend to look on NI as just another tax, in principle it isn't and does not follow normal taxation practice.
In theory, if you had ten salaried jobs all paying you a gross salary of £4,000 per annum, (i.e. £40,000 in total), you wouldn't pay a penny in NI.
Thank you for the quick reply Eric.
With my normal contracted hours I will earn £98.40 per week, so just over that £97 lower earnings limit. Is it 11% off that so I will be paying 15p? Roughly!!!
Whats confused me this week is I was paid one hour less so my earnings were under the lower earnings limit. All cleared up now with the £97 figure.
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