I have been trying to make sense of the HMRC website for a while and its just a load of incomprehensible tables which don't actually answer any of the questions I have...

Does anyone know what the deal is with NI?

I understand that the taxable threshold is £9440 below which no income tax is paid. Earnings above that figure are then taxed accordingly.


Does NI work in the same was? IE, Is there a threshold at which you start contributing and is this on your entire earnings or the earnings which fall above that threshold?


I had a nice big refund from the tax man because I didn't earn over the taxable threshold for my personal allowance but I didn't get any NI back. Trying to work out how the system actually works....

This will calculate it all for you...

http://www.moneysavingexpert.com/tax-calculator/

[Edited on 14/7/14 by stevebubs]

Found this bit of info, hope it helps

Top

How much National Insurance you pay

The amount and type of National Insurance contributions you pay depend on whether you're employed or self-employed and how much you earn. The rates shown below are for the 2014-15 tax year.

If you're employed

If you're employed you pay Class 1 National Insurance contributions. The rates are:
•if you earn more than £153 a week and up to £805 a week, you pay 12% of the amount you earn between £153 and £805
•if you earn more than £805 a week, you also pay 2% of all your earnings over £805

You pay a lower rate if you're a member of your employer's contracted-out pension scheme.

Your contributions are deducted from your wages by your employer.

Aha, that kinda makes sense....

Always a bit grim when you realise how much of your hard earned goes to queen and country...

Removed so those who want an argument have not got any ammo

[Edited on 15/7/14 by davidimurray]

Really??? You get no benefit from the fact that the state looks after all of the sick and poor? Do you not care a bit about others? Do you not get any benefit from having a police force, army or fire service or a coastguard etc etc

Do you not want the government to provide emergency aid? If somebody harmed your family would you not want the state to act? If you were falsely accused of a crime would you not want legal aid?

Would you dispense with air traffic control?


My fingers are tired....

£600 per month!! bargain

Let's not derail this with that argument please, but in case you must leave it half an hour while I get some popcorn

If you have:

someone you love to share your life with
Both of you are employed
Good health

Enjoy it. Don't worry about what taxes you pay.

Would you rather be unemployed with a chronic illness on the poverty line?

Smile

[Edited on 15/7/14 by swanny]