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New NI limits/ allowance

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. 

Comments

  • Bookworm105
    Bookworm105 Posts: 1,720 Forumite
    1,000 Posts Name Dropper
    edited 16 January at 3:20PM
    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
    SVaz Posts: 374 Forumite
    100 Posts First Anniversary
    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
    penners324 Posts: 3,359 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    The basic paye tool will do it
  • Bookworm105
    Bookworm105 Posts: 1,720 Forumite
    1,000 Posts Name Dropper
    edited 17 January at 5:40PM
    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
    Dazed_and_C0nfused Posts: 16,238 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    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
    Bookworm105 Posts: 1,720 Forumite
    1,000 Posts Name Dropper
    edited 17 January at 5:45PM
    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
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