National Insurance Query

KareenaChapman

I have a query about NI and multiple jobs - I am thinking about returning to full time work but I already work part time for 2 companies(totalling 20 hours PW)

I have a BR code for my second job which takes care of the fact that I am using my tax allowance up with my first job - my question relates to the NI - I don't pay any NI on my second job as it's below the threshold - I am looking at taking a third job to make the hours full time or just working full time with a completely new company but in working out the net pay for both options it would appear that doing so I am paying at least £100 less in NI contributions per month when splitting my wage between three companies.

Have I got the NI coding wrong? Is there a special code to use if someone has already used up their allowance?

Would appreciate if anyone knows this as this could be the deciding factor on which way to go!

Thanks:

Rozzi Rainbow

Hi Kareena

Tax is always calculated over the complete tax year, and is cumulative across all jobs, so that by the end of the year everyone should have paid near enough the right amount of tax on their earnings, whether they be from one job, or multiple jobs, hence the BR code you have.

National Insurance is assessed on a payment by payment basis, and does not take into account previous jobs within the tax year or multiple jobs. Any time an employee is paid at least £602 per month, they pay NI. So if they have two jobs, both earning say £400 per month, they won't pay any NI. So it is right that if you have three part time jobs you would pay less NI than in one full time job, as you are effectively getting the £602 per month allowance on each job, which is where NI differs from tax. As long as you are paying some NI somewhere, your NI record will be updated, so this shouldn't pose any problems.