At last! A Labour policy that makes sense.

ronib

I have just looked at my husband‘a payslip and find that as he is working as a contractor using an umbrella company, he is actually paying Employers NI as an employee and paying an apprenticeship levy.
I wish that HMRC could find a way to issue the correct tax code, which it failed to do, and to stop making contractors pay an employer’s national insurance.
Dream on…. A very confusing situation all in all.

Thank you for finding out why he's paying NICs. As you can see, he's not paying employee NICs.

Maybe an employer (*GG13*?) can confirm whether employers have to continue paying employers' NICs beyond pension age. If so, it's not just an issue for contractors. My understanding is that umbrella companies are supposed to compensate contractors for the money they pay as 'employers' (provided it's a legitimate umbrella company). I worked via an umbrella company for a short time and that's what they did.

As a number of us pointed out, most employees do not pay NICs beyond pension age and even the self-employed only pay them to the end of the year they reach SPA. No government changed the rules, so working pensioners pay NICs.

Depending on how much money is involved, it might be worth your husbands' while consulting an accountant and finding out if he can be paid directly. It's nothing to do with not having a tax code. He would have to submit a self-assessment tax return and pay whatever tax is due, but he wouldn't pay NICs.

Yes I agree, reporting illegal activity is important and should be done,

I have just looked at my husband‘a payslip and find that as he is working as a contractor using an umbrella company, he is actually paying Employers NI as an employee and paying an apprenticeship levy.
I wish that HMRC could find a way to issue the correct tax code, which it failed to do, and to stop making contractors pay an employer’s national insurance.
Dream on…. A very confusing situation all in all.

Shinamae

ronib

Unfortunately under the last government, working pensioners now pay NIC.

I don’t pay it. I’m 71 and still working part time..

Quite right! At least you get to keep a bit more of your hard-earned money!

FriedGreenTomatoes2

^As for subletting council housing - we need those random door knockers. I know of one situation where the official tenant lives in Spain, he’s on disability benefits due to mental health problems and sublets his 2 bed council accommodation. He flies back to England when his benefit status is reviewed. As FGT says it’s a long standing shameless scam^

Indeed Iam! The scammer here has learnt to play the system. Nowt wrong with HIS mental health! He’s laughing lumps. At our expense.

I assume that anyone knowing of a situation as described ie a social housing tenant illegally subletting their property, has called the local housing department to let them know? I certainly would. Same as I would if I knew somebody was flying back from overseas to "sign on".

ronib

Unfortunately under the last government, working pensioners now pay NIC.

I don’t pay it. I’m 71 and still working part time..

I actually wanted to pay NICs after I reached 66 because my contributions would have boosted my state pension, but I couldn't.

ronib

Yes I do - my husband is retired and he pays. growstuff

Well, he shouldn't be, unless he's self-employed and in the year he reaches SPA, as GG13 explained. Maybe he's due for a refund!

www.gov.uk/tax-national-insurance-after-state-pension-age#:~:text=Most%20people%20stop%20paying%20National,you%20reach%20State%20Pension%20age.
Only if he is self employed and has reached the age of 66 in the current financial year.

Yes I do - my husband is retired and he pays. growstuff

ronib

Unfortunately under the last government, working pensioners now pay NIC.

I'm fairly sure they don't. Do you have any source for that?

I think GG13 is correct.

ronib

Unfortunately under the last government, working pensioners now pay NIC.

Nobody pays NI once they reach state pension age unless they are self employed, in which case they continue paying Class Four contributions until the end of the tax year in which they reach state pensionable age.

petra

Iam64
How lovely and polite you are austerity was a really daft policy
I describe it as a f:&£#@g obscenity 😡

I have to say that I completely agree with you on that, petra.

It was economically illiterate.

It was based on the absurd idea that government finances are the same as household finances.

Iam64
How lovely and polite you are austerity was a really daft policy
I describe it as a f:&£#@g obscenity 😡

They could just give a cursory glance, but it's clear that isn't what they are about.

The citizens advice bureau informed me that their main and only objective is to get people off job seekers allowance, and told me to be prepared to be "persuaded" in all sorts of ways.

She was right, too.

We receive online job applications that only have the name on. This is so the applicant can show the job centre that they’ve applied for a job. The job centre can’t see what is on the application.

Unfortunately under the last government, working pensioners now pay NIC.

Yes but he is one person. Nobody is saying its OK, but to shame people who deserve and need benefits by constantly only picking out the "undeserving" is just to demonise all.

As for subletting council housing - we need those random door knockers. I know of one situation where the official tenant lives in Spain, he’s on disability benefits due to mental health problems and sublets his 2 bed council accommodation. He flies back to England when his benefit status is reviewed. As FGT says it’s a long standing shameless scam

Indeed Iam! The scammer here has learnt to play the system. Nowt wrong with HIS mental health! He’s laughing lumps. At our expense.

Cossy

Once state pension age is reached, my understanding is NIC cease.

It does - at least it did for my partner, who is now 69, but stopped paying NI when he was 66. I didn't pay NI either when I worked for a few months after 66.

GrannyGravy13

ronib

My hardworking son tells me that his large company has a freeze on new jobs at the moment.
I have not looked in detail but do employers have to pay increased NIC on any apprentices they employ?

The level that employers have to pay NI will be £5,000 per year instead of the current £9,100.

Employees will not pay NI on anything up to £12,576 per year, but are treated as having paid NICs without actually having to make a payment.

I can see the rationale for employees on low incomes being credited with NICs. If they were unemployed, they would receive pension credits, so would receive a higher pension than those who work part-time, which doesn't seem right.

In any case, the NI system has never been fair because people who earn more (and pay more) receive exactly the same benefits as those who have paid less.

PS. Employers' contributions is a separate issue and I don't really have enough personal experience to comment, I must admit it seems a bit strange, when the objective is supposed to be growth, which I would have thought meant employing more staff not fewer.

Once state pension age is reached, my understanding is NIC cease.

ronib

GG13 so effectively taking away any incentive to employ part time workers? Part time work being a good opportunity for young mothers and students.

Also I don’t understand why anyone receiving a State pension but in temporary paid employment should be hammered for NIC having paid for at least 40 years…..

They're not.

Yes, agreed. Cossy. I hadn't read your post before I posted, you put it so well. For someone genuine and struggling to face constant negativity by labelling makes things a lot worse.

Thank you Cossy👏👏👏

Your post is a breath of fresh air; an informed comment from someone who actually knows about the system, rather than the repeating of media scaremongering and misinformation by those who don’t!