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national insurance?

Discussion in 'Supply teaching' started by alpine273, Jul 11, 2019.

  1. alpine273

    alpine273 New commenter

    just wondered if anyone could help me establish take-home pay on a day's supply wages.

    say it's 120 a day (too low for me, but that's what one agency offered) - would it be 12% NI and 20% tax, so leaving a net pay of around 82?
  2. blazer

    blazer Star commenter

    Sounds about right. If supply is your only income then the first 12K is tax free. They may stop some holiday pay which you claim back later. I thought NI was 6%? Or are you using an umbrella company?
    agathamorse likes this.
  3. thewritingsupply

    thewritingsupply Occasional commenter

    NI 6% for PAYE.
    agathamorse likes this.
  4. Sundaytrekker

    Sundaytrekker Star commenter

    From Which website:

    ‘For 2019-20, the Class 1 National Insurance threshold is be £8,632 a year. If you earn less than this amount you'll pay no National Insurance contributions.

    If you earn more, you'll pay 12% of your earnings between £8,632 and £50,000. You'll pay 2% on any earnings above £50,000.’

    It hasn’t been as low as 6% for a while. The recent political statements about possibly raising the threshold to £12500 leaves concern as to whether low earners will accrue NI credits and rights. The thresholds are not total income but income per employer. An important fact if you work for more than one employer.
    agathamorse likes this.
  5. thewritingsupply

    thewritingsupply Occasional commenter

    Oops - my mistake!
    agathamorse likes this.
  6. elvispenhaligon

    elvispenhaligon Occasional commenter

    My NI contributions are utterly shot to hell. I can balance this out by paying them thousands and thousands.

    Realistically, at the point which I retire (death?) it will be means tested. Failing that[This comment/section has been removed for breaching our Community Guidelines/Terms and conditions]
  7. alpine273

    alpine273 New commenter

    Still don't quite understand.

    So I start supply, and no NI comes off until HMRC somehow 'know' when I've earnt 12.5k, after which point the 12% rate in addition to 20% tax kicks in? Sounds disastrous to me.
  8. dumpty

    dumpty Star commenter

    I believe.....

    NI is paid on any amount above 147 quid a week and at 11%, methinks. What is 100% certain is the personal allowance only refers to income tax and not NI.

    You will pay full NI on 12,499 pounds earned a year, as you will over that amount.

    However, if you earn less than 147 quid a week in any week, you will not.
  9. TheOracleAtDelphi

    TheOracleAtDelphi Occasional commenter

    This is going back a really long time but when I did extra hours at my 'Saturday' job during the holidays, I often ended up having to pay NI because the income for that period was over the threshold even though it wasn't when looked at annually (if that makes sense)...
  10. jubilee

    jubilee Star commenter

    It's impossible for anyone to tell the OP what NI will be paid on a daily rate of £120 (or any other amount) because what you pay in NI depends on what you earn gross in any pay period, be that weekly, fortnightly or monthly.

    If you earn under £166 per week (2019-2020), no NI is deducted from your pay.You pay 12% NI on anything earned over £166 and up to £962 per week. You pay 2% NI on anything earned over £962 per week.

    So, work just one £120 supply day per week (where paid weekly) and you pay no NI and get no NI 'stamp' credited.
    Work 2 days per weekly pay period and you pay £8-88 in NI.
    Work 3 days ina weekly pay period and you pay £23-28 in National Insurance.

    If you are in a regular job and earn just £8632 per year (equivalent of £166 per week or £719-33 per calendar month), you pay no NI. You pay 12% on anything earned over those weekly or monthly thresholds.

    There are different thresholds for income tax. You pay tax on annual earnings over £12,500 (£240-38 per week or £1041-66 per month). You pay at 20% on earnings from those amounts up to £961-53 per week or £4166-66 per month. You then pay 40% on earnings over those amounts until you reach earnings over £2884-61 per week or £12,500 per month, at which point you start paying 45% tax.

    Under PAYE (Pay As You Earn) your income tax will change each pay period if you do not have a regular income (as with agency workers). You may actually end up receiving in take-home pay more than you earned in taht pay period ... if an Income Tax rebate is added.
    Those with income from several employments should contact the Inland Revenue every year (after they get their various P60s (employer statements of gross earnings and deductions) and/or P45s (statements from employers that you ceased working for during the tax year.) The Tax office will cocmbine all earnings, total up all tax deductions and then work out what Income Tax should have been paid on the total gross earnings. If you paid too much, they will rebate you. ALWAYS ask for the rebate a s a lump sum in your bank account rather than an increase in your tax code (which reduces your futre tax over the next tax year, meaning that you get the overpaid tax back in dribs and drabs).
    Everyone should also be claiming Tax Relief on the allowable portion of their Union subs (ask your union what fraction is eligible) nad should also be claiming a Uniform Allowance of £60 per year (saving £12 or £24 in tax) if they have to maintain and launder specialist clothing that is exclusively used for work purposes. It applies mainly to PE teachers but, I successfully claimed it for years as a supply teacher who occassionally taught PE. I kept a shorts, T-shirt, tracksuit and trainers in the boot of my car for such eventualities. I sometimes just covered PE for a few lessons per year.

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