Tax & NI ?

One thing I have never understood is why they split it? Why not lump them together as tax? They all go to the same place. Long gone are the days when NI actually went into healthcare etc.
 
gropingmantis said:
One thing I have never understood is why they split it? Why not lump them together as tax? They all go to the same place. Long gone are the days when NI actually went into healthcare etc.
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Also there are two different classes of NI. NI2 which is a flat rate per week and then NI4 which is a percentage of what you earn minus your allowance which in the case of a standard 747L tax code, I believe to be £7475. This alters year to year.

I gather the percentage of NI you pay also depends upon whether you have a state pension. It's either 9 or 11% depending on if you do or don't have one.
 
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Minxy said:
Also there are two different classes of NI. NI2 which is a flat rate per week and then NI4 which is a percentage of what you earn minus your allowance which in the case of a standard 747L tax code, I believe to be £7475. This alters year to year.

I gather the percentage of NI you pay also depends upon whether you have a state pension. It's either 9 or 11% depending on if you do or don't have one.
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Kinda irrelevant as he is clearly employed hence the question.

Class 1 is deducted from PAYE salary/wages
Class 2 is a weekly payment made for those who are self employed
Class 4 is again for self employed for those who make over £x in a tax year from their self employment.

You can be made to pay all 3 at the same time too!!

There is no split in NI depending on pension according to HMRC.

All rates visible http://www.hmrc.gov.uk/rates/nic.htm
 
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