From: "Matti Lamprhey" 
Newsgroups: uk.finance
Subject: Re: NI Calculation
Date: Fri, 15 Jul 2005 14:47:04 +0100

"Joe Hunt"  wrote...
> A little advice if possible as the HMRC and IR websites are a tad
> confusing.  The situation is as follows -
>
> A job is soon to be started with a salary of £26K pa. The term worked
> will only be a period of 7 weeks. I am exempt from tax, being a
> student and not having earned anything this tax year or likely to
> exceed £4895 this tax year, and a P38(S) has been filed. The only
> deduction therefore will be NI.  How much ? Could you please show
> me the calculations as I would like to understand for future
reference.

£26K pa is £498.29 pw.  For 2005-06, Employee's NI is 11% on weekly
earning above £94 up to £630, dropping to 1% on earnings above that
limit.

So your weekly NI will be 11% of (498.29 - 94.00), or £44.47.

Matti