NI Help

peaceb4

My friend is being taxed NI A and NI D......however she doesn't even know what it is (neither do i) and her payroll dept have basically told her that there not even sure there doing things correct!!!!!

she's a care assistant (or along them lines) at the hospital....does anyone know what NI A and NI D refers to and why she is being taxed these?

she also had student loan deducted but is not eligible......do you reckon this is a payroll issue at work or HM? but then possible the student loan is being deducted because when she does bank she earns alot more than normal!?

Can anyone help?

JJH1969

Yes there are various NI tables D is for contracted out salaries (i.e contracted out of state second pension) and table A is for non contracted out standard rate.Regarding her student loan her payroll department should be able to advise why it is being deducted.

payrollpro

Interesting, as Juliet has said, category D is for a contracted out salary related pension scheme and since these are quite rare now I think she ought to have a quick check to make sure. I have seen a number of people on cat D who are in money purchase pension schemes and these ought to have been cat F but that disappeared in April 2012 anyway.

Being in two categories at one time is very, very rare and she must be in two separate contracts of employment within the same employer, one pensionable and the other not, however HMRC will allow an employer to apply the lower rate cat D to all if that represents the majority of her wages. The secondary employment has to incidental to qualify.

Just as an aside there are loads of NI categories, A to E, S, L, C, X and a whole host of special categories to deal with share fisherman, people who fish in international waters etc.

Payrollpro