NI implications of payment to employee after leaving

NI implications of payment to employee after...

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Struggling with the logic of the HMRC requirement to deduct NI on irregular payments (eg holiday pay) made after an employee has left and his/her P45 has been issued.  Where this could have been calculated and paid before the issuing of a P45, couldn't the employer be considered negligent as the employee ends up receiving less? 

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By tom123
02nd Feb 2013 19:37

NI in both cases

Would there not have been NI deducted in both cases? I suppose it depends whether the amount is over the monthly limit.

Conversely, do you not get another 'NI free' amount when making a payment after the P45, which you wouldn't get if you made the whole payment in one?

 

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By WalnutOne
02nd Feb 2013 19:49

NI on payments after leaving

To clarify, the monthly max NI threshold was reached in te last period before the P45 was raised.  Yes the lower threshold redues thecharge in the following period, but it doesn't eliminate it.

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