Small Earnings Exemption?

[Lauren Turner]

I know that if you're earning less than a certain amount, you can be exempt from paying NI on your earnings. However, sometimes I am on the cusp, and do not really know whether I would earn that much or not. Just because I can have one good month doesn't mean that I would be able to earn enough over the course of a year to be able to make things pay for me. What do you think about this? When your earnings aren't steady, and may sometimes be over the threshold and other times not, how would I go about it?

Help would be very much appreciated! Thanks!

 

[Gemma Rowlands]

I would have thought that it could go back over the average of a year, rather than being something you did month by month. So for example if you were under the threshold one year, you could get a refund on the NI you paid in the preceding year? I may well have got that wrong, so please feel free to get me know if I have, everyone, but I think that might be the case. It's how I've always interpreted it anyway, but I've always been over the threshold so it hasn't particularly mattered to me all that much.

 

[Pete Brindle]

Book an appointment with a financial advisor. If you have questions like this, it's much better doing that so that you can get proper answers rather than just guessing and hoping for the best. It's important to be on the right tax code, know what you're paying etc, because otherwise you always run the risk of having an unexpected bill for monies that should have been paid across two years but are suddenly due all at once.

 

[Mike Turner]

Just to keep everyone updated, we've booked an appointment with a financial advisor, so with a bit of luck we should be getting this sorted fairly soon I should think. I'll let you know what they say, or Lauren will.