Please ensure you use the exact details shown in inniAccounts before making the payment as late or incorrect payments may result in a penalty from HMRC. Once you have made the payment and it appears on your bank statement, you can mark the payment as paid in your bookkeeping. If salary is paid to a director, the National Insurance is calculated differently to employees.
For directors the calculations use annual thresholds instead of on a monthly basis for employees. It also explains the payment deadlines. If you are a large employer or more employees you must pay HMRC electronically. Your cleared payment must reach HMRC's bank account no later than the 22nd of the month following the end of the tax month or quarter to which it relates, so payment for month 1 ending on 5 May is due 22 May. If you are a large employer or more employees you must pay electronically.
If you pay by post, your cheque must reach HMRC no later than the 19th of the month following the end of the tax month or quarter to which it relates, so payment for month 1 ending on 5 May is due 19 May. If all payments are paid to your employee s in a single tax month during the year, you can choose to become an annual scheme. This means that you pay HMRC once a year on the due date and you don't have to complete a monthly or quarterly nil payment notification.
However you must tell HMRC so that your records can be updated and to avoid them contacting you about unpaid amounts. Late payment penalties and interest apply to all employers. Find out more about late payment penalties. When you pay HMRC it is important that you use the right reference number.
This makes sure your payment reaches your account and you won't get reminders after you've paid. You can find this on:. It is important that you show your reference number with no gaps between the characters, otherwise it could lead to delays in updating your records. You can check the number using HMRC's online checker tool. Depending on when you make your payment to HMRC you may also need to tell them the year and the month you are paying. It's important that you include this information so that you don't get reminders for payment when you've paid.
When making your current monthly or quarterly payments on time you'll only need to provide your 13 character Accounts Office reference number. You still need to use your 13 character Accounts Office reference but with some extra information.
If you don't add the extra information, or you use the wrong tax year and PAYE month, HMRC won't be able to allocate your payment correctly and you may receive payment reminders. If you have any difficulty including an extended reference number on your payment request you should speak to your bank or building society.
If you pay using an extended reference number it will need to be changed for any further payments otherwise the payments will be incorrectly allocated.
The easiest way to check you are using the correct reference is to use HMRC's online reference checker. The table below shows you the months and quarters for the year to and the extra numbers to add to your reference.
You may have to pay interest and late payment penalties if you do not make your payment on time. You can see details of what you have paid and what you owe or are owed in 'view account' on the 'At a glance' page. If the payment is made in a later tax year to the one in which the employee left, an FPS is required in the later tax year for the tax period that payment is made. The year to date figures on the FPS should reflect only that payment. If you have already given an employee a form P45 you should deduct PAYE using code 0T non-cumulatively on a week 1 or month 1 basis using the normal pay period for the employee for example, monthly or weekly , at the time you make the payment.
This payment should be submitted on an FPS. Payments in connection with employment related securities, including cash payments arising from those securities, made to an employee after leaving should also be taxed using code 0T for England and Northern Ireland, S0T for Scotland and C0T for Wales week 1 or month 1 basis non-cumulatively.
In such cases, you should provide the employee with documentary confirmation of the payment for example, by letter, payslip or other printed or printable document giving the following details:. You must not give the employee another form P If the payment is made on or after the employee reaches their 21st birthday or the apprentice reaches their 25th birthday, work out National Insurance contributions using the:.
If the payment is made when the employee is under 21 years of age or the apprentice is under 25, work out National Insurance contributions using the:.
If the payment is made when the employee leaves, work out National Insurance contributions using the:. If the payment is made after the employee has left, that is after their contract has ended, the earnings period to use is dependent on whether the payment is a regular or irregular payment. The final salary to a monthly paid employee leaving in the middle of the month is paid at the usual time at the end of the month.
Work out National Insurance contributions using a monthly earnings period even though the payment is only for part of the month. If the employee has turned 21 or the apprentice has turned 25 or the apprenticeship has ended, category letters M, Z or H are not appropriate. Category A must be used. A 20 year old apprentice terminates the apprenticeship and receives an irregular payment after leaving the employment.
Category H cannot be used as the apprenticeship has ended. Whether category M, Z or A should be used depends on whether the ex-apprentice is still 20 or has turned If an employee gets 2 or more payments together after leaving, the earnings period is dependent on what those payments are. If some payments are salary and others are irregular sums, add the payments together and work out National Insurance contributions on the total using the usual earnings period for the payment of salary.
If all payments are irregular sums, add them together and work out National Insurance contributions using a weekly earnings period. No National Insurance contributions are due on the earnings of an employee who dies before payment of those earnings is made. When you learn of the death of an employee you should enter a leaving date, this will be the date of death, on the FPS with the last payment for the deceased, do not issue a P Check with your software provider whether the package you use will complete these calculations automatically for you.
When you learn of the death of a pension recipient you should enter the leaving date, this will be the date of death, on the FPS with the last payment for the deceased, do not issue P If such payments are made in a later tax year to the one in which the pension recipient died, refer to the following 2 examples, if the payment is made in a later tax year than the date of death:.
Transgender people can legally change their recorded gender and benefit from any rights and responsibilities associated with their acquired gender. In order to gain legal recognition in their acquired gender, transgender people must apply to the Gender Recognition Panel.
If their application is successful, the panel will grant a GRC which will allow the individual to get a new birth certificate. For those born between 6 April and 5 December , State Pension age is 65 for both men and women. For people born after 5 December men and women State Pension age increases beyond 65 years old. For more information and the State Pension age calculator, read check your State Pension age.
For detailed guidance on how a change in gender may affect the operation of National Insurance contributions and PAYE , including a list of frequently asked questions, read what to do if an employee changes gender.
For guidance about when and how to tell us about correcting errors, read fix problems with running payroll. If, during the tax year, you discover that a mistake has been made in the amount of National Insurance contributions or PAYE deducted, take the following action, if:. However, there are special rules which allow you to recover underpayments of National Insurance contributions from your employees where the error was made in good faith.
This is done by making extra deductions from any later earnings you pay that employee. There are 2 conditions that apply to these recoveries relating to the amount and the time in which you can recover. The second condition is that the extra deduction can be made during the remainder of the tax year in which the error occurred and the whole of the following tax year.
If at the end of the second tax year you have been unable to recover the full amount under deducted, then you may not recover any more from the employee and you must bear the cost of the loss yourself. If the employee leaves your employment after the error occurred you must bear the cost of the loss yourself.
An error occurred and was made in good faith on 30 April The employer may make extra deductions from any earnings paid to the employee during the period 1 May to 5 April until the underpayment is recovered. If you have made a mistake in the current tax year or you discover that information you have already reported is incorrect, the action you need to take depends on when you discover the error.
If you need to correct an error in a previous tax year, read fix problems with running payroll. You should try to recover the underpaid tax by making extra deductions from any later earnings you pay that employee by the end of the tax year.
You should do this by agreement with the employee. For more information and examples of errors, read fix problems with running payroll. If you discover the issue on or after 20 April in the following tax year you should submit an EYU or an FPS if your software allows it.
Read more about fixing problems with running payroll. HMRC will refund any overpayment of primary National Insurance contributions direct to the employees. Sending amended information means that your original return was either incomplete or inaccurate and could mean that you may be charged a penalty.
As a general rule, you as the employer have to pay any underpayment of National Insurance contributions arising from an error. Guidance on how you can recover under deducted primary National Insurance contributions from your employees is as at paragraph 1. If you unintentionally overpay wages or pension, the following guidance explains what to do under real time information.
For payments prior to real time information read paragraphs 1. When an unintentional overpayment is made and the employee or pensioner continues to be entitled to employment or pension income, the mistake must be corrected in your next FPS by reporting the correct total payments to date and correct net tax to date.
You should:. In certain circumstances where we identify that an employee has received pay knowing that the employer has deliberately failed to deduct tax, a direction can be made for the employee to pay the underpayment. This will usually be where we cannot recover the PAYE from the employer. Where we also identify that an employee received pay knowing that the primary contributions had not been deducted or paid over, a decision can be made for the employee to pay those contributions.
Arrears of pay are earnings paid after the date that an employee should have received them and are usually paid as a lump sum. Arrears of pay are earnings and are treated just as if they had been paid at the right time. If an employee on a cumulative code is due a refund of tax but is not entitled to receive any payment from you in a pay period because:. You may choose to have different employer PAYE references for separate groups of your employees, for example, for wages and salaries or for separate branches of your organisation.
Where acquisition of another business is involved and you wish to submit real time information for employees of that business under a different employer PAYE reference, HMRC can set up the additional PAYE scheme immediately as long as the P is received within 90 days of the acquisition.
Making the election results in each employer PAYE reference being treated separately for all PAYE and National Insurance contributions purposes with separate payroll records being required for each one. You must do this even if you have not made any deductions of PAYE tax or National Insurance contributions from your employees in that pay period.
Your final submission is the last FPS or EPS you submit for the tax year, regardless of whether it relates to weekly or monthly payroll. If you run more than one payroll under the same PAYE employer reference, ensure you report the total YTD figures for all payrolls operated under the employer scheme.
Instead you must submit an EPS indicating the following:. If, during a tax year, you submit a FPS containing information that later needs correcting, you can make the correction upon your next regular FPS or by submitting an additional FPS before your next regular FPS is due. Real time information reporting inaccuracies can be corrected this way if done before the 19 April which immediately follows the end of the tax year for which the correction is needed.
After that date the correction must instead be done by submitting an EYU or an FPS if your software supports this , which are to be used to correct reporting inaccuracies for closed tax years. If you have reported incorrect information on an EPS, you must submit another EPS to report the correct total year to date figures for all recovered payments within that tax year.
For more information and guidance, read payroll: annual reporting and tasks. Exceptionally, you may need to send an amended P35 return where you discover that an employee or pensioner received a payment that they were not entitled to and you wish to make a claim from HMRC for overpaid tax. For example:. If you need to make a claim for the overpaid tax you must send this information on a P35 and P We will not accept it in any other format. In all cases:. You must show only the amount of any amendment.
Employers who must file online will not get a non-filing penalty if an amendment is sent on paper and the original return was sent on time. All employers are now required to provide a workplace occupational pension scheme for their employees.
If you choose to establish a new auto-enrolment pension scheme in the UK for your employees, it must be registered with us before tax relief can be given. Only contributions made after the scheme is registered can be given tax relief. If you want to know more about registering a pension scheme read pension scheme administration guidance or contact Pension Schemes Services.
The Pensions Regulator provides more information about the additional criteria for non UK pension schemes. The Pensions Regulator provides guidance on which tax relief method may be best for your employees. You can only give your employees tax relief on pension contributions including additional voluntary contributions if the scheme is registered with us. If you reduce their taxable pay in respect of contributions to a pension scheme that is not registered you may be liable for any tax that you have failed to deduct from their pay.
Where you deduct contributions under the net pay arrangement, remember that an employee is entitled only to tax relief, and not relief from National Insurance contributions. Failure to meet this deadline could lead to civil proceedings by The Pensions Regulator.
PAYE does not apply to lump sums paid under or out of a registered pension scheme, except:. Where the payments relate to benefit rights that have already been crystallised PAYE is due on the entire amount.
The remainder of the amount is subject to PAYE. For National Insurance contributions purposes, do not include in gross pay any lump sum from a registered pension scheme. The Pensions Tax Manual has up-to-date guidance, including recent legislative changes.
Most lump sum payments made under or out of an employer-financed retirement benefits scheme essentially, an unregistered scheme should be taxed in full under PAYE. You can find more information about these schemes in the Employment Income Manual and the National Insurance Manual , read sections on:.
Read the guidance on paying a company pension or annuity through your payroll to find out more. If we have not contacted you by 5 April, or the employee retires so late in the tax year that the first pension payment is made after 5 April , carry forward the existing tax code to the new tax year but use it on a cumulative basis.
You do not give the personal representative a form P When you start to pay the pension, deduct tax using code 0T on a week 1 or month 1 basis until you hear from us. Continue to use the same code as before on the employment income. Most pensions and annuities from, or in respect of, a registered pension scheme are PAYE pension income. Where the pension or annuity is for a nominee or successor they may be exempt from tax.
See paragraph 2. Where such payments are made to third parties or non-individuals, such as personal representative, trustee in bankruptcy or a body corporate. Where such payments are made to a named beneficiary or beneficiary you must follow the usual procedures for new pensions and annuities.
Report PAYE pension income under real time information. Where such payments are made to third parties or non-individuals, such as personal representative, trustee in bankruptcy, body corporate you must submit the following information under real time information:. For named beneficiaries or new recipients of pensions or annuities you must follow the procedures at paragraph 2.
Whether a trivial commutation payment or a winding up lump sum is taxable in whole or in part as pension income, tax has to be deducted through PAYE from the taxable amount. From 6 April individuals have been able to flexibly access a money purchase pension if it is held in a registered pension scheme. They can do this through:. These payments are taxable in whole or part as pension income. Tax must be deducted from the taxable amount through PAYE and reported under real time information.
Use the following tables for instructions on how to fill in the FPS. Read detailed information about the tax treatment of the different types of death benefit payment in the Pension Tax Manual. Members of a pension scheme suffering from serious ill health may receive pension entitlement under an arrangement as a lump sum. The scheme administrator will commute this if certain conditions are met.
Use these tables for instructions on how to fill in the FPS. If you do this, enter as the date of leaving on the P45 the date on which you make the final payment.
If you agree to make any payments that are free of tax, read paying employees cash in hand or guaranteed take home pay. The employee is a table B employee. For more information, read paying employees cash in hand or guaranteed take home pay.
Payroll giving is a voluntary scheme that allows employees to give money to a charity direct from their pay and get tax relief on the donations they make. Employers who currently offer the scheme say they find it easy to run and valuable for promoting good employee and community relations.
You can get tax relief for the costs of administering the scheme. If you already offer payroll giving, remember that employees are entitled only to tax relief, not relief from National Insurance contributions. An example of a third party making awards is where in the course of a sales promotion, the manufacturer of the product gives awards to salespersons whose direct employer is actually selling the product in question.
If a third party provides a cash award, the third party is responsible for deducting PAYE from the award and should seek advice on what to do from us. The value of that award must also be reported to you to enable you to account for the National Insurance contributions due. If a third party provides the award they can only account for the tax by entering into a taxed award scheme. Promoters who sell incentive schemes or operate them for others cannot account for tax on awards except those made for their own employees.
Read paragraph 5. You, the employer, are liable for any Class 1 National Insurance contributions even if a third party provides the awards to your employees. But, where the award attracts a Class 1A National Insurance liability, the third party is liable unless you arrange or facilitate the provision of the award.
They can account for the Class 1A National Insurance contributions by entering into a tax agreement scheme. For more advice, read Part 6 — third party benefits of the CWG5 guide. Payments made by way of non-cash vouchers, with certain exemptions, attract liability for National Insurance contributions.
That is, you must add the cost to you in providing those non-cash vouchers to any other earnings paid in the earnings period and work out National Insurance contributions on the total. You do not have to calculate or report any National Insurance contributions for the pay period until the last payment is made in the same period. Pay the National Insurance contributions due on the revised gross pay figure.
Most non-cash vouchers provided by third parties, where the direct employer does not arrange or facilitate the provision, are excluded from Class 1 National Insurance contributions. However, vouchers provided by third parties in connection with the provision of readily convertible assets read section 5 always attract Class 1 liability and the direct employer is responsible for the National Insurance contributions. This is the case regardless of whether the tax is accounted for through a taxed award scheme.
Follow the instructions for how to calculate, record, and report the National Insurance contributions due on the amount of tax you paid. Where the tax is in relation to benefits in kind or non-cash vouchers, which are subject to Class 1A National Insurance contributions, the third party will be responsible for paying Class 1A National Insurance contributions on the amount of tax paid if they have arranged or facilitated the provision of the benefit or non-cash voucher.
The third party will also have to account for that payment through a taxed award scheme. You do not have to calculate or report any National Insurance contributions for the pay period until the last payment to that employee is made in the same period. For more information about liability for National Insurance contributions on items included in PAYE settlement agreements, read section 5. If an award is made for the benefit of more than one employee, read paragraph 2.
Cash vouchers are vouchers that can be exchanged for an amount of money which is not much less than the expense the employer or third party incurs in providing them. The amount to include in gross pay is the surrender value of the voucher. The cost in providing a non-cash voucher is not normally the face value unless, exceptionally, the cost in providing it and its face value are the same.
As such, a non-cash voucher is valued for National Insurance contributions purposes in the same way as for tax. If you provide a voucher which attracts a National Insurance contributions liability for the benefit of more than one employee, the value of the voucher must be apportioned between those employees.
They provide the voucher to 3 employees with the intention that employee:. The following types of non-cash voucher, provided to an employee, are exempt from National Insurance contributions liability:.
From 6 April changes were made to the rules about providing vouchers to employees for childcare. So long as the qualifying conditions are satisfied, National Insurance contributions are only payable on the cost of the childcare which exceeds the exempt amount. Providers of awards who wish to enter into a taxed award scheme should ask for an information pack from:.
Email: incentive. Employers who use the TAS arrangements for incentive awards, and third parties who provide such awards, can report liability for Class 1A National Insurance contributions and account for the National Insurance contributions through taxed award scheme arrangements.
This section describes the special rules for working out National Insurance contributions and deducting PAYE on certain types of holiday payments. The following information relates to schemes for holiday pay in the construction industry or similar schemes when a group of employers contribute to a central, independently managed holiday pay fund such as electrical contracting, heating, ventilation and domestic engineering industries.
Employment law instructs employers in the obligation of providing paid holidays to their employees, so each employer must calculate and pay their employee the payment due to them when taking holiday during the period of that employment.
How to work out National Insurance contributions on holiday pay is described at paragraph 2. For example, Christmas or their annual holiday, for both PAYE and National Insurance contributions purposes include the amount set aside in gross pay at the time it is set aside.
For holiday pay from a holiday credit scheme when money is set aside each payday to be paid in a lump sum when your employees take their holidays, for both PAYE and National Insurance contributions purposes, include these amounts in gross pay:.
In both cases, the figures must be included in their payroll record and sent to HMRC on your FPS when you report your payroll information. For example, if an employee is on holiday in weeks 16 and 17 and the wages for those weeks are paid in week 15, together with the pay for week 15, PAYE tax should be calculated on the holiday pay using week You must report the payment on the FPS in the week you make the payment. Where PAYE is being worked out on a week 1 or month 1 basis, split the pay equally between the full weeks of the holiday and work out and record PAYE on each amount separately for each week.
You should report the payment on an FPS in the week that you make the payment. The total amount of PAYE due for these weeks is the amount you should deduct from the total holiday pay. If your employee will be leaving or retiring straight after their holiday, then work out the PAYE tax due on their holiday pay using the free pay for the week in which you pay it to them.
Split the sum up and work out National Insurance contributions on the payment for each week separately. Work out the National Insurance contributions on the whole sum based on the number of weeks it represents.
Round up parts of a week. Work out National Insurance contributions on a 3 week basis by dividing the total earnings on which National Insurance contributions are payable by 3, looking up this figure in the appropriate weekly table and multiplying the National Insurance contributions shown in the table by 3. If an employee stays at work instead of taking their holiday and you have already worked out National Insurance contributions on the holiday pay, the additional National Insurance contributions due on their wages for working is dependent on how the National Insurance contributions on the holiday pay were calculated.
If method B was used do not add the holiday pay to the pay due for working but work out and record National Insurance contributions separately on the pay due for working in the normal way. If weekly paid employees do not take their holiday until sometime after receiving the pay for it. If payments are due to be paid during a holiday period, the National Insurance contributions due on the payment are dependent on how National Insurance contributions were worked out on the holiday pay for the week in which payment is due to be made.
For example, an employee is due to be paid for overtime worked but because of the payroll arrangements the overtime does not become payable until the employee is on holiday. If method A was used to work out National Insurance contributions on the holiday pay, regardless of the week in which the payment is actually made:.
However, if the payment is actually made in a different tax year from the one in which it was due to be made, work out National Insurance contributions separately on the payment based on the contribution rates and limits current at the time of payment. If method B was used to work out National Insurance contributions on the holiday pay, and if payment is:.
These examples are based on to contribution rates and limits for an employee paying National Insurance contributions under category letter A.
National Insurance contributions are worked out using the exact percentage method. On the payday of 20 August, as the overtime payment has already been accounted for, National Insurance contributions are only due on the wages for that week as follows.
Add the overtime payment to the wages and work out National Insurance contributions on the total. National Insurance contributions due are therefore:. Wage incentives paid to employers as part of the Youth Contract or Work Choice are subject to normal rules of taxation. A tip or gratuity is an uncalled for and spontaneous payment offered by a customer either in cash, as part of a cheque payment, or as a specific gratuity on a credit or debit card payment.
Where that is not the case, the payment is a compulsory service charge. PAYE is not due if cash tips are received directly from customers by your employees and are retained by them, and the monies never pass through your hands. Such tips are, however, taxable directly on the employee who should tell us the amounts they have received. Your employees should declare the money to HMRC who will usually adjust their tax code to collect any tax due. If, as an employer, you operate a scheme that pays your employees a share of tips or gratuities including cash tips received by employees and handed to you by the employees for sharing or service charges whether voluntary or mandatory you must include the amount paid to each employee in their gross pay and deduct PAYE accordingly.
A tronc is a separate organised pay arrangement used to distribute tips, gratuities and service charges. The troncmaster is responsible for operating PAYE on all payments made from the tronc, including any share of cash tips. The troncmaster, or someone on their behalf, will need to operate a computerised payroll system and report payroll information to HMRC when or before the payments are made to employees. If you impose a mandatory service charge and the money is paid out to your employees, National Insurance contributions are due on the payments no matter what arrangements are in place to share out the money.
See Booklet E Tips, gratuities service charges and troncs , which explains when National Insurance contributions will be due. Where National Insurance contributions are due, the responsibility for working out and recording the National Insurance contributions will always be yours, as the employer. If a troncmaster makes a payment to your employees on which National Insurance contributions are due, make sure you:.
The troncmaster should record the amounts on which National Insurance contributions are due separately from any tips or gratuities on which National Insurance contributions are not payable. It may also be advisable if you take responsibility yourself for paying all earnings to any employee whose basic pay is not enough for full deductions of PAYE and National Insurance contributions to be made.
Further guidance can be found at running payroll. Where you decide an employee is involved in a trade dispute but they disagree, advise the employee to contact Jobcentre Plus. During a trade dispute the procedures that apply in relation to the payments you make to the accounts office are as follows:. If you have chosen to continue as normal to work out the tax refunds due to your employees you should observe the following procedures when making your monthly or quarterly payments to the accounts office:.
You should take the following action in such circumstances:. Guidance for reporting PAYE in real time is also available at payroll. Ordinarily, the earnings period for working out National Insurance contributions is the regular interval between which payments of earnings are made. The following paragraphs describe how to decide what the earnings period is in different circumstances.
The rules described in those paragraphs ordinarily do not apply to directors. Read CA National Insurance for company directors for details on the earnings period to use for directors. If you pay your employees at regular intervals, for example, weekly or monthly, the earnings period for working out National Insurance contributions is that regular interval. If a payment is not made at regular intervals, there may be a regular pattern covering the period for which each payment is made.
In such cases, that regular pattern should be used as the earnings period. If the interval between payments to employees is not regular, and cannot be treated as being regular, the earnings period for working out National Insurance contributions is the period which the payment covers, or one week, whichever is longer.
If either period is less than one week, the earnings period is one week. The earnings period for a payment made before the employment begins or after it ends is 1 week. As a general rule, if an employee is paid more than one set of regular payments, all payments must be added together and National Insurance contributions worked out using the shorter of the regular intervals between payments.
If an employee receives basic pay on a weekly basis and commission on a monthly basis, National Insurance contributions are worked out on the total pay based on a weekly earnings period. When you first pay an employee, you must work out National Insurance contributions based on what will be the normal earnings period for the employment using the contribution rates and limits current at the actual time of payment.
If the interval between an employee starting work and the first payday is less than the normal earnings period, still work out National Insurance contributions using the normal earnings period.
A new employee starts work on 6 October and is due to be paid monthly on the last day of each month. The earnings period is monthly and the first payday is 31 October. Work out National Insurance contributions using a monthly earnings period.
If the interval between an employee starting work and the first payday spans 2 or more earnings periods, and each period is in the same tax year, work out National Insurance contributions on the amounts due for each of those earnings periods separately using the normal earnings period. A new employee starts work on 9 June and is due to be paid monthly on the last day of each month.
The earnings period is monthly and the first payday is 31 July mistimed payments. If the interval between an employee starting work and the first payday spans 2 or more earnings periods, and the relevant earnings periods are in different tax years, work out National Insurance contributions on the earnings due for each period separately using the normal earnings period.
Use the contribution rates and limits current at the time the earnings are actually paid. A new employee starts work on 10 March and is due to be paid monthly on the last day of each month. The earnings period is monthly and the first payday is 30 April. If the actual date of payment and the usual payday are in the same tax year, treat the early or late payment as if it had been made at its usual time. In different tax years, work out National Insurance contributions on the early or late payment separately from any other payments made in that tax year, using the contribution rates and limits appropriate to the year in which the payment is actually made.
If the payment is due to be made on a non-banking day, read paragraph 1. In both the same and different tax years, look at each payment individually and decide which of the rules apply to that payment. An employee is paid monthly on submission of a timesheet. The employee submits timesheets for February , March and April during May Work out National Insurance contributions on the payments due for February and March separately using the to contribution rates and limits.
Record the National Insurance contributions separately in tax month 2. Work out National Insurance contributions on the payments for April and May separately and record the National Insurance contributions in tax months 1 and 2 respectively.
The methods described for calculation of mistimed payments can only be used when nothing was paid on the usual paydays. This section describes the rules which govern the payment of National Insurance contributions if an employee has more than one job. If an employee has another job or jobs with a different employer or employers, work out National Insurance contributions in the normal way on the earnings you pay the employee. Ignore the payments made to the employee in the other jobs.
You may be asked to show why it has not been practicable to add together the earnings from each job. For advice on the type of information we use if we review your decision, read paragraph 3. You can find more information in the National Insurance Manual. Read aggregation of earnings at NIM onwards. An employee may work for 2 or more employers in separate jobs but only get one payment of earnings. If an employee has 2 or more jobs with you at the same time, the general rule is that you must add all the earnings together and work out National Insurance contributions on the total.
For example, this might be if you operate a computerised payroll system which is unable to perform the separate calculation and you would then have to do it manually.
0コメント