Spreading pay out to reduce NI

[Andrew01]

Dear NI Forum

Employer has verbally said I am doing something wrong by submitting my timesheets when I decide, as it reduces the NI I pay, saying I should submit the timesheets in the week I work. Is there anything wrong as far as HMRC is concerned with me submitting timesheets when I decide?

I am paid weekly therefore the NI Earnings Threshold/ET is £110 a week.
I am only paid for work when I submit the timesheets
I have no contracted hours, but work when I decide/the employer wants me
My hourly rate contains element for holiday pay, so I don’t get separate holiday pay.
I am aware of benefits of paying/being awarded NI credits.
My NI contribution letter is A

Example
In week one I worked 2 days earning £100 a day
I complete a separate timesheet for day one and two
At the end of the week I submit only one timesheet I therefore pay no NI on that weeks £100 pay.
In week two I am on holiday, but post in the timesheet for day two I therefore pay no NI on that weeks £100 of pay.

Therefore In this example I have saved paying NI on 11% of £90 that is £9.90 of NI, by not submitting both timesheets in week one.

The employer is saying I should not hold onto timesheets and submitting them when I want.

Iain

[JRG]

It may seem an easy way to avoid paying N.I., but it doesn't work in practice.

If you submit one worksheet a week at just below the threshold, say £109, you will earn a maximum of £5,668 in a year.

If you hope to earn more than this then at sometime you're going to have to submit worksheets that exceed the threshold.

[Andrew01]

As you say I plan to earn only £5000 to £6000 in this job this year and have done in past years. I should made this clear in my original question.

[JRG]

In that case, I see no problem in what you're doing.

I understand that the weekly rate applies if you are paid weekly.

If you are paid monthly then a proportional monthly rate applies (i.e. £110 x 52 / 12 = £476.66).