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New NI limits/ allowance

SVaz
Posts: 374 Forumite

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.
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.
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Comments
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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)0 -
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.0 -
The basic paye tool will do it1
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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.
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.0 -
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.
6,960 / 12 = 580 pm
ST = 758 pm
Rates and allowances: National Insurance contributions - GOV.UK0 -
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.
6,960 / 12 = 580 pm
ST = 758 pm
Rates and allowances: National Insurance contributions - GOV.UK0
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