Why no NI

[expat]

Use the HMRC PAYE+NIC CD rom to calculate it. Or buy Sage Instant Payroll, 85 quid. The Revenue like Sage.

[Ivor1]

As 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

[Ivor1]

If 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

Cheers everyone most appreciated.

[ASB]

No to sure on what the choices are even after reading the document, whats the best way to approach it ?

If 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

[where did my id go?]

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

[Ivor1]

Thats a choice you can make

No to sure on what the choices are even after reading the document, whats the best way to approach it ?

[ASB]

As a director you don't pay any NI until you reach the threshold. I'm guessing that's why.

Thats a choice you can make

[Ivor1]

As a director you don't pay any NI until you reach the threshold. I'm guessing that's why.

Cheers matey googled and found this and it explains it,

http://www.buzzacott.co.uk/publish/3...50SJ/index.asp

[TheMonkey]

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.

[VectraMan]

As a director you don't pay any NI until you reach the threshold. I'm guessing that's why.

[Ivor1]

must be a mistake then on my payslip

cheers

[ASB]

No it wouldn't

[Ivor1]

Would being on an emergency tax code mean no NI is taken until its sorted ?