harry007

From my understanding, national insurance works out at 11% if you earn more than £100 a week, correct? I've been working through the summer for a mortgage broker (i'm a student) tax etc was being paid, but because he was paying me by cheque etc every two weeks, he didnt work out any nic.

so after one set two weeks of work(two weeks ago), he handed me a bill which took all two weeks of work to pay this one bill of nic. The letter was from an accountant. The confusion I have over the letter. It says I need to pay £x amount, and my bosses share is £x amount. So thats fine, I paid my 11week late nic. But on the letter its addressed that my boss pays the the outstanding amount of his share

So to make it simpler:

1. I am now paying nic, can my boss charge me nic for his share too?
2. I havent been paying nic, because of his laziness (plus it was my first official job, so had no idea) do I pay back dated nic? or no start fresh?

so in conclusion, is my boss eligble to charge me nic for his share and mine?

Sorry if i'm being thick, but I realise if I was paid via payee system, this wouldnt have been a problem.

Any help is much appreciated.

David Lock

If you don't get a sensible answer here then give your local tax office a ring. They can actually be quite friendly and helpful. It's probably rare for students to actually be declaring an income so that will be in your favour! You may be due some tax back if your employer has not been given a proper tax code for you. dl

harry007

Let me put it simpler,

If my boss has failed to deduct nic from my wage for over 4months, does he or his accountant have the right to demand a lump sum for outstanding nic? If I dont pay it, is it breaking the law, or mean going to court?


p.s. is it me or accountants dont buy scoobies

fast bloke

You have to pay it. He has to pay employers contributions. Legal requirement in both cases. You don't have to pay it to your boss or his accountant as a lump sum, but eventually the taxman will come knocking at your door, so you might as well pay it now and forget about it

harry007

When you say he has to pay employers contributions, does that come out of my wage? I've paid the amount he owes, not what i personally owe
Shouldnt he pay his share himself? Otherwise that brings a grand total of £800+ in national insurance for 3months........

fast bloke

Employee should pay 11% (Class 1 primary contributions) which comes out of their pay - Employers should pay 12.8%,(Class 1 secondary contributions) which is paid directly and doesn't come out of employees pay.

So if you earn 20k, you should pay (ignoring thresholds, contracting out etc) £2200 per year from your salary and he should pay £2560, which is an additional cost to him and not taken from your salary

harry007

Thanks for your help mate, I appreciate. He's actually charged me his sum not mine. Gonna have a chat with him.

harry007

Final question mate. I only started working full time since mid may. He never made me sign a form or p45/ payee etc. So doesnt that mean I'm officially not declared as an employee? So the fact now he is asking for national insurance lump sum, can that be justfied and am I by law obliged to pay it?

Finally I was reading on the H&M website, unless I got it wrong. If I get a letter from the H&M telling me my NIC contrubutions are non and not suffecient. Its voluntary to pay it off, as its not a demand or a bill unlike tax?

So basically, boss has messed up, not taking any nic, now wants all? but his accountant has only asked for his amount owed not mine