NIC implications for non executive director

sancahojo

I am an employee of an investment company in the UK. As part of my role I am a non exec director of two of our UK subsidiaries. This has been the arrangement for 5 years. Last week, our payroll department informed me that because I am a director they have to change the way that I pay NIC. This has resulted in a huge NIC payment this month.

I don't believe this can be right as I receive a salary from the company I am employed by and no fees or other payments from the companies that I am a director of. I am not a director of the company that pays me.

Could anyone advise whether my NIC is being treated correctly?

Jeremy535897

Have a look at this in the section "more than one job" (page 14 onwards):
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1030714/CA44.pdf

KingOfSnake

Also go back to payroll and point out that you are not remunerated by the two companies you are NED. 
https://www.legislation.gov.uk/uksi/2001/1004/regulation/8
If you were caught by Annual Earnings Period ("AEP") here are different ways to calculated Dir AEP NIC. Front load it (like you have been, which is !!!!!! but less risky because if you would have paid up-front, back-load it (so you benefit from the LEL and earnings to ET in the first instance but pay more later in the year) or you can do monthly if you do receive regular salary. 
Tell them that you receive no fees in the first instance and if they carry on just pop this under their noses. 
https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim12031