Loading Profile...
Calculating Director's NICs
Can you switch between cumulative and non-cumulative NIC calculations for Directors?
Our payroll used to be handled by an external agent. We want to bring it in house, but have already had payroll calculated for a couple of months. Since updating the payroll functionality, the directors NICs are zero for much of the year until the hit the ET and then there are 2 or 3 larger payments for NICs. I'm sure it all evens out, but I'm under the impression that once you've started with monthly deductions you have to continue?
As a work around, we use the HMRC cd-rom to make calculations then manually edit the payroll / payslips in FAC. Would be interesting to know if you were going to make this different NIC calculation possible in the future?
Our payroll used to be handled by an external agent. We want to bring it in house, but have already had payroll calculated for a couple of months. Since updating the payroll functionality, the directors NICs are zero for much of the year until the hit the ET and then there are 2 or 3 larger payments for NICs. I'm sure it all evens out, but I'm under the impression that once you've started with monthly deductions you have to continue?
As a work around, we use the HMRC cd-rom to make calculations then manually edit the payroll / payslips in FAC. Would be interesting to know if you were going to make this different NIC calculation possible in the future?
I’m flummexed!
1
person has this question
I have this question, too!
Tell me when someone answers.
The more people who ask this question, the more it gets noticed.
The more people who ask this question, the more it gets noticed.
-
Inappropriate?Hi
I think that the easiest option with this is to run the payroll in FreeAgent for the whole of a tax year as you want it, i.e. Directors NI. This assumes the person has been a director for the whole of the tax year in question.
This will leave you a total liability for tax and NI for the whole year. What you have actually paid during the year is then taken off what you owe during the year, leaving you with a balance.
I hope that helps
Phil
