Tax & Nat Insur - Thieves!
Tax & Nat Insur - Thieves!
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Discussion

AndyAudi

Original Poster:

3,518 posts

238 months

Tuesday 22nd March 2011
quotequote all
I’m a little bitter, & wanted to check my understanding is correct.

I haven’t worked for quite a while, but due to having made sufficient provisions for myself I was not able to claim any benefits whilst not employed. (despite contributing more than my fare share when i did)
Started a new job this month and expected all the cumulative deductions to sort themselves out, indeed a small tax rebate!
However the thieves still helped themselves to a chunk of NI, this is not it seems calculated on a cumulative basis, instead it’s on a weekly/monthly one.

Now I went to the Dentist the other day, Private of course as Nat Health not available, my calculated O’Payments would be sufficient to pay for my treatments twice over.

As far as I can see on HMRC’s website this is not an overpayment as it has been calculated correctly (fairly is debateable). Am I right or can I get this back? I will get a small claw back to my contracted out Personal Pension (although the thieves are stopping this in a year or so too)

I read the other day it was suggested they combine all into one big income tax, bring it on I say.

Eric Mc

124,034 posts

281 months

Tuesday 22nd March 2011
quotequote all
Did you REALLY think that you only paid tax and NI for YOUR personal benefit?

Or do you not understand the principle of taxation?

AndyAudi

Original Poster:

3,518 posts

238 months

Tuesday 22nd March 2011
quotequote all
Eric Mc said:
Did you REALLY think that you only paid tax and NI for YOUR personal benefit?

Or do you not understand the principle of taxation?
No Eric I didn't think that.

Rant was just because I got my Payslip this morning & was a little surprised to see that the same people calculate two taxes in different ways.

I understand the tax principle, it makes sense to give annual allowances and tax you only if you go above it. But NI Doesn't seem so fair

Eg (simple figures)

Someone earning £400mth for 12mth & someone earning £2400 for just 2mths of tax year.

Both earn just £4,800

Both pay the same amount of tax (none in this example)

Only one of them pays £400 of NI.


Eric Mc

124,034 posts

281 months

Tuesday 22nd March 2011
quotequote all
NI operates on very different rules compared to Income Tax. NI is calculated on earned income only (unlike Income Tax) and whether you pay it or not is also based on the earnings from each individual source of earned income.

Once your income from any one source of earned income goes over the Lower Earnings Limite (LEL), you start paying NI in that job.

If you had 6 jobs all paying you £5,000 per annum, you would not pay any NI as none of the jobs were paying you above the LEL.

Mojocvh

16,837 posts

278 months

Tuesday 22nd March 2011
quotequote all
AndyAudi said:
I’m a little bitter, & wanted to check my understanding is correct.

1. I haven’t worked for quite a while, but due to having made sufficient provisions for myself I was not able to claim any benefits whilst not employed. (despite contributing more than my fare share when i did)


2. Now I went to the Dentist the other day, Private of course as Nat Health not available, my calculated O’Payments would be sufficient to pay for my treatments twice over.
1. Same here sort of...
2. No I can't afford to go priv, and my 114 per week (for a family of four) stops me having ANY subsidised dentistry....