Tax and NI problem

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
I've been asked to look into something for my sister in law, and I hope someone out there can advise me.

She works for a hairdressers very part time and earns £37 per week. She is about to start another job which will pay her £80 per week. This will take her over the tax and NI threshold when added together, and she does want to start paying tax and NI to begin to build a basic state pension. There is some doubt as to whether she will be employed at her second job, or self-employed. If employed, can she elect to have all of her wages taxed and NI'd through the higher paid job?

If not, can she complete a tax return in the normal way, and pay NI by stamp?

All suggestions gratefully received :roll:
Jackie

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Tax and NI problem

    Hi

    I know it is possible to split your tax allowance if you are a student and have 2 jobs. My daughter did this as she had another job over the summer as well as her normal weekend job. It may be possible for your sister in law to do this. Try looking on HMR&C website.
    You can't do this with NIC though, although the first job is well below the threshold, each job is treated seperately (spelling :oops: ?) you don't add wages together. Then again I'm no expert on payroll.
    There is a way she can still build up basic state pension if she is unable to work ful time because she has to care for children or is a home carer - think it is called Home Responsibilities or something like that.

    Jan
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Tax and NI problem

    Thanks for your reply. I'll try and dig through the NI website. It looks like she won't be liable for NI if they are treated separately. But her children are 14 and 16 and I don't think she will be getting any pension credits as she is not a carer. Can she elect to pay NI so that she can build up a pension of her own?

    Jackie
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Tax and NI problem

    HRP covers you until children are 16.

    Annette
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Tax and NI problem

    Hi Jackie

    If you are claiming Child Benefit you are covered by HRP (thank you Annette, I was nearly there :!: ) and yes you can pay voluntary NI contributions, again look on the HM Revenue & Customs website.
    By the way the Revenue are clamping down on people being "self employed" - loosing out on all that employers NI- so you might find in her second job she will need to be employed.
    Jan
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Tax and NI problem

    Thanks for your advice. She would prefer to be employed herself so I'll get her to push for that. I have checked HMRC and she can pay Class 3 conributions once her youngest child becomes 16.

    Best wishes, Jackie

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