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Reply to: Why no NI
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Previously on "Why no NI"
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Use the HMRC PAYE+NIC CD rom to calculate it. Or buy Sage Instant Payroll, 85 quid. The Revenue like Sage.
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Originally posted by VectraManAs a director you don't pay any NI until you reach the threshold. I'm guessing that's why.
Does that apply to both Employer and Employee NI ?
Also does this threashold only kick in when you become a director ? In tax year 2006 - 2007 I wasnt a director until now, so I have already earnt and paid NI etc in this tax year as an employee does that not count towards the Director threashold, do I start at £0 when I become a director ?
Cheers
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Originally posted by ASBIf you want to avoid paying it for as long as possible then apply the rates to the amount in excess of the annual threshold (5035 I think). This means you'll pay a little more monthly once the threshold is reached - but the same over the year.
Alternativley average salaries and apply the rates to that. This can lead to over/under payments and a balancing payment may be required.
In any event at the end of year a balancing payment can be required if there have been wild wings in income.
I think these may help
http://www.hmrc.gov.uk/nitables/ca44.pdf
http://www.hmrc.gov.uk/ebu/ni2003.pdf
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Originally posted by Ivor1No to sure on what the choices are even after reading the document, whats the best way to approach it ?
Alternativley average salaries and apply the rates to that. This can lead to over/under payments and a balancing payment may be required.
In any event at the end of year a balancing payment can be required if there have been wild wings in income.
I think these may help
http://www.hmrc.gov.uk/nitables/ca44.pdf
http://www.hmrc.gov.uk/ebu/ni2003.pdf
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You can choose to calculate it normally. If you pay yourself a regular salary then why not.
The directors rules are to stop abuse from paying irregular amounts and hitting threasholds
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Originally posted by ASBThats a choice you can make
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Originally posted by VectraManAs a director you don't pay any NI until you reach the threshold. I'm guessing that's why.
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Originally posted by VectraManAs a director you don't pay any NI until you reach the threshold. I'm guessing that's why.
http://www.buzzacott.co.uk/publish/3...50SJ/index.asp
Last edited by Ivor1; 25 October 2006, 18:10.
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Aye or do what I do - pay NI monthly , then work out the difference at the end of the year and either scramble it back or send them a cheque. Saves overspending trouble.
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As a director you don't pay any NI until you reach the threshold. I'm guessing that's why.
Leave a comment:
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