National Insurance - BR Tax code

National Insurance - BR Tax code

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Sorry if this is dim!

My sister in law just informed me she has been on a BR code since May 2004, working full time with only one employment.

Whilst she can get a refund of tax, are there any implications for the amount of NI she has paid?

(I just wondered if BR was a special case for NI)
Tom Cadogan

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By User deleted
28th Feb 2005 20:05

Codes...
Codes would be 474L AND OT.

Hopefully NICO would notice if they got two P14s from the same employer for the same NI number!

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By neileg
28th Feb 2005 10:04

Not a scam
No, Ebeneezer, it's not a scam, it's a real problem. In the public sector where I work, It's quite common for people to work on more than one contract, especially multiple part time contracts. In practice we do aggregate the pay for tax purposes, but calculate NI separately. This is the agreed position with the revenue.

Fortunately, this problem is going away as all our contracts are moving to monthly. Then we just have the issues around sickness. If you have an employee who works as a school secretary and a sports coach, an injured leg may make them unfit for work as a coach, but they might still work as a secreatary. How do you deal with the sick pay?

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By Abacjm
22nd Feb 2005 15:14

Current BR Code
Ebeneezer,
Current BR Code is 474L(wk1) not 461L.
Tom,
She should complete the P46 and you can then forward it to local I/R office. You should then get a P6 with a current cumualtive 474L code number, which would mean that she will get any tax rebate due, when it is first applied within the current tax year. Dont leave it too long to chase them up, o/w she will have to apply for a rebate on the back of her P60 receipt.

There is no connection between tax and NIC whether or not a Code no. is operated. the default NI letter is A.
BR means Basic Rate and is usually applied to a second job where the personal allowances are used up in the first job.

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By tom123
22nd Feb 2005 10:51

Thanks for the comments, I just assumed there must be some mechanism for stopping you getting two lots of NI free pay!

She has asked for, and completed, a p46 on my advice, so things should sort out.

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By neileg
22nd Feb 2005 14:48

No aggregation
There is no aggregation of income for NI purposes. You could have any number of jobs at £4k per annum and never pay any Class 1 NI.

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By neileg
25th Feb 2005 13:32

Jaxs
As a well known Smart Alec round here, there is a wrinkle to your advice about connected employments.

The Revenue can't cope with aggregation if the pay periods are different. So if you have two contracts with one employer and one is paid weekly and the other calendar monthly, there's nothing in the legislation to cope with this, and you have to treat them as separate employments.

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By AnonymousUser
25th Feb 2005 12:15

Connected employments
Just before some smart alec gets an idea, there are rules which aggregate two or more employments for NIC purposes where the employers are connected. This means that, for example, in a group situation it is not possible to reduce the NIC bill by having each group company pay a small salary, rather than one company paying a larger salary.

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By User deleted
25th Feb 2005 00:05

codes
"Ebeneezer,
Current BR Code is 474L(wk1) not 461L."

BR code is BR and takes 22%. 474LX (also known as the emergency code) allows personal allowance on a non - cumulative basis.

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