National Insurance (NI) 2012/13
- Employees' National Insurance rates and bands
- Payment of NI contributions over State Pension age
- Special treatment for some married women and widows
- Deferment of the payment of employees' contribution for employees with more than one job
- Your National Insurance number
- Contact details
Employees' National Insurance rates and bands
Employees' primary Class 1 rate (contracted-in)
This rate is for employees who are not members of a University pension scheme and are in National Insurance category A.
Employees' primary Class 1 rate (contracted-out)
For those employees who are members of a University pension scheme and are in National Insurance category D.
Employees also receive a rebate of 1.4% on earnings between £464 and £634 per month.
| NICs category letter | A (Contracted-in) | D (Contracted-out) | C (Over state pension age) |
|---|---|---|---|
|
Earnings at or above LEL up to and including ST£464-£624 |
0% |
0% |
NIL |
|
Earnings above ST up to and including PT£624.01-£634 |
0% |
0% |
NIL |
|
Earnings above PT up to and including UAP£634.01-£3,337 |
12% |
10.6% |
NIL |
|
Earnings above UAP up to and including UEL£3,337-£3,540 |
12% |
12% |
NIL |
|
Balance of earnings above UEL£3,540.01 + |
2% |
2% |
NIL |
|
NICs rebate on earnings above LEL, up to and including ST |
N/A |
1.40% |
N/A |
|
NICs rebate on earnings above ST, up to and including PT |
N/A |
1.40% |
N/A |
Payment of NI contributions over State Pension age
Employees over State pension age, currently 60 for women and 65 for men, do not have to pay the employee's contribution. Before we can stop deducting contributions we must see proof of your age. This can be a birth certificate, passport or preferably a certificate of exception (form CF384) issued by the Inland Revenue National Insurance Contributions Office. You should receive a letter from us prompting you to send us the certificate shortly before your 60/65th birthday.
To apply for a certificate of exception (CF384) you need to write to:
Inland Revenue National Insurance Contributions Office
Class 1 Caseworker
Benton Park View
Newcastle upon Tyne
NE98 1ZZ
If your birthday falls on or before the payday for that month your contributions should cease from the 1st of that month. For example, if your birthday is 20th August (with payday 28th August) no contributions are due for the whole month.
If your birthday falls after payday for that month you will pay contributions on the whole month. For example, if your birthday is 30th August (with payday 28th August) contributions are due for the whole month.
Changes to the State Pension Age
From December 2018 the State Pension age for both men and women will start to increase to reach 66 by April 2020. A Woman's State Pension age will therefore increase more quickly to 65 between April 2016 and November 2018.
Special treatment for some married women and widows
Some married women and widows have the right to pay reduced rate NI contributions. These women should provide us with a valid "certificate of election". This reduced rate is no longer available to new applicants.
If you currently hold a "certificate of election" you are required by law to let us know of any changes in your circumstances which may affect your right to reduced liability.
Deferment of the payment of employees' contribution for employees with more than one job
If you have more than one employment and anticipate that at least one of your employments will exceed the Upper Earnings Limit of £42,745 per annum, you can apply to defer some of your contributions liability. Where permission is granted you will pay a reduced employee rate of 2% on earnings over £634 per month.
For example, If you are paid £45,000 by one employer and paid £15,000 by another then you could apply for deferment on the secondary employment. The employer paying the lower salary will be issued with a form CA2700 which gives authority to deduct NI contributions at 2% only on all earnings over £634 per month.
To apply for deferment you need complete the form: "Deferring Payment" (CA72A) from the HMRC Website.
Your National Insurance number
Only one number is allocated to you and you keep that same number throughout your life. It is unique to you and ensures that your NI contributions or credits to your NI account are correctly recorded. You will need these contributions and credits when you come to claim benefit, whether it is for a short while, like Incapacity Benefit, or long term, such as your retirement pension.
All residents working in the UK have a National Insurance number. UK nationals are issued with them automatically at age 16 years. Non-UK nationals will have to apply for one. To do this you must make an appointment to be interviewed at the local Department for Work and Pensions (DWP) offices:
Jobcentre plus
7 Worcester Street
Oxford
OX1 2BX
Tel.: +44 (0) 8456 000643
The Directgov website explains how to apply for a National Insurance number.
Your number will then be issued some weeks later on a plastic National Insurance number card. As soon as you receive your number, contact us with the details. The number will be made up of numbers and letters, like this: AB 12 34 56 C. National Insurance numbers cannot be used for the purpose of identification. Please note that numbers beginning with TN are not valid numbers.
Not having a National Insurance number will not stop you from being paid by the Payroll Office providing you have given evidence of your permission to work to your employing department and has no effect on your tax code or status. The issuing of a number will not initiate a tax refund. The Tax Office may give you a personal reference that looks similar to a National Insurance number as it is a mix of alpha and numeric. This is NOT your National Insurance number unless it is in the format shown above.
If you would like further information about registering for a National Insurance number contact:
National Insurance Registrations Helpline, tel.: 0845 915 7006 or 0845 915 5670.
Contact details
For further information, please contact:
Payroll team
Telephone: 01865 (6)16301
Email: payroll@admin.ox.ac.uk