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What Income Threshold In The UK Do National Insurance Contributions Apply To? |
If someone earns under £75 per week are they liable to pay national insurance contributions?
and if not, will they still be liable to pay NI contributions throughout the tax year and file for a tax rebate at the end of the tax year?
Is there an income threshold which exempts people on very low incomes making periodic (monthly) NI contributions through out the year?
| Answer: NIC isn't calculated on a cumulative basis like tax. Each payday is taken in isolation, NIC deducted accordingly if due. There is no provision for any refunds unless employer has made a mistake in the year. A person earning under £110 a week should not have NIC deducted. On £110 you pay 1p, it then works out at 11% of any excess. A person on a low income which is under the limit should ask the Benefits Agency if there is any way they can get NI credits. Otherwise they won't be able to claim state retirement pension or certain other benefits. See http://www.hmrc.gov.uk/rates . |