Employees and Employers NI Contributions

[Maxamus]

Well i got my 1st pay slip through a few weeks ago and it didnt occur to until now that there was no mention of National Insurance.

Im paying £69.30 tax every month on a £10,000 salary a year. My pay comes out at £763.99 per month.

What should the Employees and employers NI Contributions be...?

Has my accountant fooked up by not including them on the pay slip?

[Sockpuppet]

Google is your friend. Please use it


http://payecalculator.inlandrevenue.gov.uk/PAYE0.aspx

Employer NI is AFAIK 12% on everything over £94/week

[Maxamus]

so i should be paying employee and employer NI then ?

[Sockpuppet]

http://www.businesslink.gov.uk/bdotg...3859167&r.s=tl

[ASB]

so i should be paying employee and employer NI then ?

If you are a director the calculation can be done differently. I personally would imagine your accountant is much more likely to have a better idea of what he has done and why.

[Maxamus]

gonner ring the bastard on monday

[malvolio]

You're not mixing up you and YourCo again are you? You must get it absolutely clear in your own mind that they are different legal and economic identities before you get into problems.

It's called "Employer's NI" for a reason - and who do you suppose should pay for it? The clue is in the name...

[Maxamus]

You're not mixing up you and YourCo again are you? You must get it absolutely clear in your own mind that they are different legal and economic identities before you get into problems.

It's called "Employer's NI" for a reason - and who do you suppose should pay for it? The clue is in the name...

ye the employer (the ltd company) should pay for it but "i" as an employee have to pay some aswell.

i'll ring the accountant on monday

[malvolio]

Well yes, but the original question seemed to imply you expected to pay both yourself, whereas Employees NI comes out of your paypacket and Employers NI out of the company. In reality they are both paid by the company, along with your PAYE tax.

Agreed the distinction is a little academic when you own all the money involved but it is important you always make the distinction.

Also, as you say, you need to check, and if your accountant has somehow neglected to pay either one, sack him and get one that knows what they're doing. It's you that will get the fines and penalties...

[Nixon Williams]

For 2005/06 Employer NIC is charged at 12.8% on any salary paid over £5035.

Directors' pay their NIC slighty differently to normal employees and pay it on a cumulative basis.

So, no NIC is paid until the cumulative salary exceeds £5035 (pro-rata if appointed during the year).

NIC is then paid at 11% by the director on all salary until the higher limit (£33,540) is reached when it drops to 1%

I hope this clears this up!

Alan