National Insurance

Discussion in 'Army Reserve' started by Zingari, Mar 25, 2005.

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  1. Had a chat with the tax office. 8O

    I am informed that National Insurance should NOT be paid on TA pay if you are in (main) employment and you are paid above the Upper Earnings Limit (UEL - not sure of the exact figure).

    In this case your 'second employer' (ie the Army Pay Office) should seek a deferment from paying NI.

    As an 'employee' you cant arrange this yourself! Has anyone achieved this yet with APO and what about reclaiming the overpayments?
     
  2. Interesting...add that on to the rebate in lieu of pension and we could be doing nicely...!

    On the other hand, I'd be careful about stirring up a hornet's nest and having to pay higher rate tax...That's a new thing for me this year, anyone know how it works? If I don't get a return to fill in can I just keep schtum?
     
  3. I believe we are meant to fill in a TAX self assesment form?
     
  4. You are breaking the law if you are a high tax payer and not declaring the TA money as part of the "high tax" earnings... i.e. you owe them 18% of all your TA income.

    TA money is taxed at 22% and if you pay high tax (like me) you will have to fill in a return... and pay the extra. I have just been told I need to find 2 years @ 18%..... ALSO if you leave it and keep quiet they can claim interest!!!!!

    If anyone does have details on claiming NI back please post!!!! Also what's the score with pensions?
     
  5. From

    http://www.inlandrevenue.gov.uk/faqs/nicqc1.htm#WhatHappens

    What happens if I have more than one employment - do both employers have to deduct NICs at the full rate?

    If a person has more than one job, both employers have to deduct contributions subject to the gross pay being above the Lower Earnings Limit. If the total employee contributions payable in the employments are likely to exceed the annual maximum contribution payable, a deferment certificate may be obtained.

    If I have paid too much in NICs, how do I claim a refund?

    Apply to:

    Refunds Group
    Inland Revenue National Insurance Contributions Office
    Benton Park Road
    Longbenton
    Newcastle upon Tyne
    NE98 1ZZ

    Further information regarding Refunds is available
     
  6. Looks like I'll be handing my kit in, makes more sense for me to work regular 9-5 hours and allow the Missus to work (at a much lower Tax band). Pity they stopped blokes from using the wives tax breaks, womens lib :evil:
     
  7. Telephone number for NI Rebates 0845 915 9128. If you are paying Higher Rate Tax you are fairly likely to qualify. Nice bit of joined up Government means you need to apply even though they know you are due the cash.
     
  8. I know!!! I'm gutted... I love doing all this but soon I''l be paying them for the pleasure!!!!!

    At least Bounty is Tax Free... FOR NOW!!!! :evil:
     
  9. Well, at least the NI @ 11% would partly offset the extra tax at 18%...

    As someone has said, it's good the way you have to pursue them for money they know they owe you...yet they charge you interest on money you owe them even if they don't ask for it.

    Tax returns - should I expect one automatically next yr as a higher rate payer or is it just random whether or not you get one?
     
  10. I believe you will have to request the first one but they will be automatic every year thereafter (they never let go you know!). One thing to watch for is that they only ever include a single Employment page so you will still have to request (or download) a second page for your TA employment.
     
  11. Spoke to a very nice lady in Newcastle, who pointed out that this years figures won't be on the system for a while yet, but she was amazed at all the people calling in who were in the TA.. 8O

    The power of Arrse :D
     
  12. They do eventually tell you if you don't need to do yearly tax returns again. I got a letter from them this year telling me I didn't need to do another and my earnings (incl) TA pay are still well over the bracket. Not sure why I don't need to do one but not complaining!
     
  13. I had just my tax a couple month back and I can confirm that you will get charge all TA at 40% if you are a higher rate taxpayer and your tax office should send you a new tax code to the Army pay office so your PAYE will be on 40% on all your TA pay going forward. Rebate will be available and (I always blowed mine) if you had pay NI on your TA pay.

    The same go for those who had been mobilised during the tax year. And the hit is petty deep.
     
  14. bibo_boy - I know all about my tax liability as a higher rate tax earner since I have been on self assessment for the past 5 years! The first time I got one they went back three years and I ended up £2.5k out of pocket. Despite protestations that I was salaried - it was pay up or face a default fine + interest. 8O

    Can you believe that I paid over the phone with switch - because when you get something from them that states "This is NOT a demand" - believe it, it is.

    As a law abiding tax payer my motto is to get back all that you overpay - funnily enough they never volunteer that!

    However I got a letter last year stating they were taking me off self assessment. I've heard that anyone in salaried employment earning less that £100k will be removed.

    The question now is do I chase up the NI they owe me or leave it and stay off self assessment. Although the latter is no great problem being salaried I do mine online!
     
  15. Thats tax paid.

    Call out gratuity - Same?