National Insurance Refund (due to highly variable income)?

[ABB125]

I have a few questions about National Insurance (and possible refund) for the previous tax year. (Nothing to do with the recent changes in rates and thresholds!). For 2021/22, the lower threshold was £797/month, or £9564/year.

My understanding is that NI thresholds apply to each job you might have separately (ie: if I have two jobs which pay £6000 each per year, I don't pay NI), and that (obviously!) you only should pay it if you earn more than the threshold. How does this work if, like me, you have a highly variable monthly income from one job? For example, one month I could be paid £150, the next £1200, the next £400 etc. Over the whole year I don't exceed the annual threshold, but in a couple of individual months I exceed the monthly threshold and thus have NI deducted, even though I don't earn enough annually to pay.

Is this correct? Can I claim a refund from HMRC?

I've tried to find an answer online, but everything is based on having a fixed monthly income, so is pretty useless!

Thanks!

 

[oxfordray1]

NI is calculated per pay period I think. Its not like income tax. So it doesn't seem like you are eligible for a refund.

 

[Phil56]

NIC is indeed "per employment", but it's also "per pay period". So if you earn over the threshold in any pay period (week or month), you pay NIC, and that's not offset/averaged over other pay periods. So, in your position, you won't be eligible for a refund despite not earning over the threshold over the full year. The only exemption is company directors who can opt for NIC to be over-ridden on an "annual" basis.

 

[ABB125]

I see, thanks both. Ah well!