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National Insurance

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hey there

I was always under the impression that everyone pays NI on their wage, and you dont get any back or anything...

however I was reading in the Daily Mail a few weeks ago and they said you get the NI on the first few thousand you earn back? Seemed odd but I can't find out how to do this!

Anyone know anything about it?


  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    It's not NI you get back , it's PAYE Tax.

    This is the standard tax system used by employers.

    Basically everyone has a personal allowance. This is an amount, dependant on circumstances, which is allowed tax free for each financial year.

    For example, (These are made up figures)..my tax code indicates that I have a tax free allowance of 4500, so that is calculated against my yearly salary and not taxed..so say I didn't work for three months, that's three months I have not had an income, and am therefore entitled to three months tax back..etc etc..

    If you want more info check out www.inlandrevenue.gov.uk
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