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Where Taxpayers and Advisers Meet

Primary Threshold - can I use annual limit?

njb55rtd
Posts: 5
Joined: Thu Apr 01, 2010 9:42 am

Primary Threshold - can I use annual limit?

Postby njb55rtd » Thu Apr 01, 2010 9:56 am

Hi
I started work in January and have had three wageslips. £1500 gross per month and £112.64 NIC deducted which is theoretically correct (1500-476x11%).
However, I have not worked in the previous year so my annual gross for 2009/10 is below the minimum £5720. Do you think I should have paid NIC and, if not, can I reclaim it? Incidentally, I have 40 odd qualifying years so don't "need" to pay from that point of view.
Thanks in advance.
njb

RAL
Posts: 1064
Joined: Thu Oct 30, 2008 12:47 pm
Location: London & Surrey
Contact:

Re: Primary Threshold - can I use annual limit?

Postby RAL » Thu Apr 01, 2010 10:20 am

NIC is not calculated on cumulative basis. It is calculated on week1/month1 basis unlike income tax. I am afraid you do not get any money back. Even if you had 40 years of contribution.

You do not need to pay NIC once you reach retirement age.
RAL

RAL
Posts: 1064
Joined: Thu Oct 30, 2008 12:47 pm
Location: London & Surrey
Contact:

Re: Primary Threshold - can I use annual limit?

Postby RAL » Thu Apr 01, 2010 10:21 am

If you are director then, you can calculate on cumulative basis but not for employees.
RAL

njb55rtd
Posts: 5
Joined: Thu Apr 01, 2010 9:42 am

Re: Primary Threshold - can I use annual limit?

Postby njb55rtd » Thu Apr 01, 2010 11:29 am

RAL
Tks for your advice.
njb

AJHenderson
Posts: 95
Joined: Fri Nov 06, 2009 9:08 am

Re: Primary Threshold - can I use annual limit?

Postby AJHenderson » Thu Apr 01, 2010 11:51 am

Is there any guidence which refers to the difference between an employee or director for NI contributions as HMRC denied my request for a refund for a director

robbob
Posts: 2842
Joined: Wed Aug 06, 2008 4:01 pm

Re: Primary Threshold - can I use annual limit?

Postby robbob » Thu Apr 01, 2010 2:12 pm

http://www.hmrc.gov.uk/nitables/ca44.pdf
CA44 contains guidance on how NI should be calculated for directors.
How is the director due a refund of NI? this seems a bit out of the ordinary.


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