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Where Taxpayers and Advisers Meet

NI due on wages not paid in correct period

Posts: 1
Joined: Mon Jan 28, 2019 5:29 pm

NI due on wages not paid in correct period

Postby meganstax » Mon Jan 28, 2019 5:38 pm

My granddaughter works part time for little above minimum wage rate. Her normal pay is between the Lower earnings limit and the primary threshold.
She was on maternity leave from mid March to mid December 2018, receiving SMP, and paying a small amount of NI in the months where she received 5 weeks SMP in the period. Fair enough.

However, when she returned to work in mid December, her normal pay was not reinstated in that month.
So for month 9, she received SMP of £148 and just £32 for a few hours under the employers “Keep in touch” scheme whilst on maternity leave.
In January, her pay was brought up to date. So gross figures for period 10 were £645 for January, plus pay adjustment of £446 for December. As a result £49 was deducted for NI in that period.

Is this correct? I have spent some time trying to research the matter on the internet. I appreciate that bonuses etc. are treated in the period that they are actually paid. But in my granddaughter’s case, might not the provisions within SI 2001/1004 7(1)(a) – payment treated as though it were made at the regular interval- apply?

Thank you for reading; I would be grateful for any clarification or comments.

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