New NI limits/ allowance

SVaz

I know I’ll be able to use the Employment allowance to mitigate NI come April - I have one employee earning £6960, so well within the new £10k allowance.
My query is whether I have to pay the NI then claim it back or whether the hmrc basic paye tool does the calculation monthly so there will be nothing to pay from the start?   I seem to remember a tick box for claiming employment allowance. 

Bookworm105

if you mean in cash terms then you pay the balance owed to HMRC per the HMRC tax due account, which is of course populated by the payroll submission
ie you pay the net total amount: Income Tax (£x) + EE NI (£x) + (ER NI - EA = £0)

SVaz

Ah yes, I was forgetting I have an Employer’s tax account in addition to my self employed account.
I remember the rigmarole my Wife/ employee had setting it up 😂 so she could pay herself above the LeL and get NI credits for the 3 years she’s missing. 

penners324

The basic paye tool will do it

Bookworm105

SVaz said:

Ah yes, I was forgetting I have an Employer’s tax account in addition to my self employed account.
I remember the rigmarole my Wife/ employee had setting it up 😂 so she could pay herself above the LeL and get NI credits for the 3 years she’s missing. 

sound strategy, but if her annual pay is 6,960 (*) then you will not breach the secondary threshold, so no ER NI due in the first place, so your question is academic anyway:
6,960 / 12 = 580 pm 
ST = 758 pm 

Rates and allowances: National Insurance contributions - GOV.UK

* Note, unless she is a director and can therefore operate the annual pay scheme, she needs to earn at least £533 pcm so £6,396 pa (ie LEL x 12) to get a full year credit.

Dazed_and_C0nfused

Bookworm105 said:

SVaz said:

Ah yes, I was forgetting I have an Employer’s tax account in addition to my self employed account.
I remember the rigmarole my Wife/ employee had setting it up 😂 so she could pay herself above the LeL and get NI credits for the 3 years she’s missing. 

sound strategy, but if her annual pay is 6960 then you will not breach the secondary threshold so no ER NI due in the first place, so your question is academic anyway:
6,960 / 12 = 580 pm 
ST = 758 pm 

Rates and allowances: National Insurance contributions - GOV.UK

But from 6 April 2025 the secondary threshold, and therefore the point a PAYE scheme is needed, drops to £5,000.

Bookworm105

Dazed_and_C0nfused said:

Bookworm105 said:

SVaz said:

Ah yes, I was forgetting I have an Employer’s tax account in addition to my self employed account.
I remember the rigmarole my Wife/ employee had setting it up 😂 so she could pay herself above the LeL and get NI credits for the 3 years she’s missing. 

sound strategy, but if her annual pay is 6960 then you will not breach the secondary threshold so no ER NI due in the first place, so your question is academic anyway:
6,960 / 12 = 580 pm 
ST = 758 pm 

Rates and allowances: National Insurance contributions - GOV.UK

But from 6 April 2025 the secondary threshold, and therefore the point a PAYE scheme is needed, drops to £5,000.

ok so I got distracted, searched for wrong year link, and lost sign of the "come April" comment