I have an employee of a payroll who pays tax under PAYE but is exempt from nic's as he's an Elim Pentecostal Minister of Religion. I've received notification to start deducting student loan repayments but the software (Iris Bureau) won't calculate them even though he's over the threshold for paying them. Is it because he doesn't pay nics?
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NI Earnings are used as the figure for calculation of student loan repayment. In this instance it would be important to pay the employee using a code which is considered both taxable and NI Earnings, then use an NI Table such as "X" to indicate the NI payment exemption.
The salary is down as taxable and NIable but then I have shown the table as X. No ees or ers which is correct. If there is no niable earnings (which there aren't) I'm assuming no SL deductions.
I've always understand table X to be an exemption from deductions, not an exemption from earnings... Otherwise all manner of things would stop working; eg the employee wouldn't be entitled to SSP or SMP. The case of a normal working age UK employee being table X is sufficiently rare that I suppose I might be wrong, however.
Table C was the normal one for no deductions. Employer's contributions only. Used for old gimmers and, at one time, folk who earned over the UEL on one job but had another.