Hello,
Now the budget has past I'm just working out how much clients previously on a salary of £640 per month should be taking. As I understand it the £2,000 Employers NI freebie means that one man owner/managers should now be on £833.33 per month which means paying a small amount of Employees NI each month.
Since the annual amount looks less than £25 would it be a problem to ask clients to pay the full amount in month 1 rather than a tiny amount each month? Will that break HMRC's systems? Any ideas?
Replies (5)
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Directors' NI should be calculated annually. HMRC will allow you to calculate it monthly, but there should be an annual correction in month 12, or when the director leaves the employment. So the £245 should be payable in month 12, rather than month 1.