NI Calculation

Joe Hunt · 2005-07-15T12:58:32+00:00

A little advice if possible as the HMRC and IR websites are a tad confusing. The situation is as follows - A job is soon to be started with a salary of 26K pa. The term worked will only be a period of 7 weeks. I am exempt from tax, being a student and not having earned anything this tax year or likely to exceed 4895 this tax year, and a P38(S) has been filed. The only deduction therefore will be NI. How much ? Could you please show me the calculations as I would like to understand for future reference. Many thanks.

Jul 15, 2005 28 Replies

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Andy Pandy 21 years ago

Not for employees that take their annual leave on those days! It's no more a working day *for them* as a bank holiday.

Otherwise using that logic, my employer has 365 working days per year!

They're both benefits which have a value, and a fixed value regardless of what overtime you do. Ie your overtime rate should really include the value of your pension, health insurance, sick pay "insurance" etc added to your annual salary..a bit like bank holidays and annual leave.

Yes, it's usually at the discretion of the employer.

Still more than the normal hourly rate. There again, when you include pension benefits etc....

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Tim 21 years ago

"Andy Pandy" wrote

Which just shows how inappropriate your use of the phrase "working days" was!

"Andy Pandy" wrote

It often does - in that pensionable salary often includes some element for overtime.

"Andy Pandy" wrote

So you'd pay a healthier person a lower overtime rate than a more poorly person? Sounds a little crazy to me!

"Andy Pandy" wrote

... which simply means they only apply that discretion to allow it, when they accept that it's an extra benefit to the person.

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Jonathan Bryce 21 years ago

Not always.

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Tim 21 years ago

"Jonathan Bryce" wrote

That's why I said "usually".... Never mind!

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Joe Hunt 21 years ago

Hi Tim,

Many thanks for all the responses. I will be paid monthly, two weeks in arrears, two weeks in advance.

Joe

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Tim 21 years ago

"Joe Hunt" wrote

OK, monthly...

"Joe Hunt" wrote

Hmmmm. So is that actually "four-weekly"?

[Or is it "roughly" two weeks in arrears/advance, making monthly?]

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Joe Hunt 21 years ago

I haven't a clue. I tell you something, come August 16th when I have my first pay slip I will inform you on what happened.

Thanks again to all, Joe

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Nebulous 21 years ago

Well I work in care, which needs to exist 24 hours a day, seven days per week. Our system divides the annual salary by twelve and you get paid that monthly. For leavers or starters during the month it divides the 1/12th salary by the number of days in the month, and pays that rate for every day employed.

This is a bit of a bugger, because the payment does not tally with hours worked, and some of our advertising gives an hourly rate- to help compare with our competitors, who generally quote hourly rates. I regularly get into discussion with new starts who cannot relate the number of hours worked to what they have been paid.

I suppose our advertising should say 'Salary of x thousand pounds per year, which roughly equates to y pounds per hour.'

Neb

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