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NI payment

SuduSudu New MemberRegistered Posts: 5
Hi,

I am working in two places getting small money which is not deducting any tax or NI from me or paying from my employers. But if I get both payments together, it's a taxable amount. My question is I could pay tax when I do the tax return, but what about NI? at the moment I don't contribute any money for NI neither of my employers......

As both jobs are part time, am I eligible to get maternity leave (20hrs per week in total)

Any idea?????

Thanks,

Comments

  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC, FMAAT Posts: 423
    Sudu,

    The short answer is that, yes, eventually you will have to pay tax if the aggregate amount paid to you is more than £6,475 a year. The bad news (depending on how you look at it) is that even if the two sums exceed the NI threshold, you will not pay NIC and this can seriously affect your benefit entitlements in the future.

    This has a bearing on your final question because SMP depends on you reaching the lower earnings limit in at leats one of your jobs. The LEL in 2009/10 was £95 a week and if any one of your jobs paid at least this amount you will not have been liable for NIC deductions but you will gain an entitlement to SMP.

    At the appropriate time you would need to approach both employers and ask for SMP. It is then up to them to refuse it, if that is the case, and explain why.

    Payrollpro
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Sudu wrote: »
    Hi,

    I am working in two places getting small money which is not deducting any tax or NI from me or paying from my employers.

    You should have filled in form P46, which would result in you getting taxed in one of the jobs at BR. It sounds like the employers may not be operating payroll procedures correctly.

    If you aren't earning enough for NI and want to keep your contributions up to date you can ask to pay Class 3 (Voluntary contributions).
  • SuduSudu New Member Registered Posts: 5
    Thank you for all of you....

    Yes, I handed over my P45 for one place and started with p46 in the other place. For some reason both places using 647L tax code. ( I'm not sure how).

    this is very useful....

    Thank you....
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Sudu wrote: »
    Thank you for all of you....

    Yes, I handed over my P45 for one place and started with p46 in the other place. For some reason both places using 647L tax code. ( I'm not sure how).

    this is very useful....

    Thank you....

    You should have given your P45 to the first job, and filled out a P46 to the second.
    You should have ticked box C - I have another job.
    This should have given you a tax code of BR in the second job.

    If this hasn't happened, you need to talk to your P46 employer.
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    yes agreed they need to put you on week one untill your code is sent
  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC, FMAAT Posts: 423
    Personally I would immediately ask for BR against one of the jobs, this arrangement definitely means you will face a catch up payment of income tax at some time. But someone needs to look at the different levels of income to see what the situation is.

    As an aside anyone who has a client that receives this notice from HMRC about deficient NI and an invitation to pay voluntary contributions ought to take specialist advice because the majority who receive one has no need to make the payment but most do.

    Many people who receive the notice, and it is mainly women, do not know that they can apply for protection which means they do not need to pay but the letter they receive is not very clear, it concentrates on the fact that the year will not count and the payment is needed to make it.

    Worth thinking about.

    Payrollpro
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