Ive just set up a limited company and have entered the Directors details in he payroll software - Im using Moneysoft.
Given we are in Sep I thought I would allocate the £7968 NI free amount over the remaining 7 months at £1138pm but have found that this creates an NI bill of £454.56 spread over the last 3 months. In fact - no matter how I do it it will now only let me do payroll of £5500 avoiding any NI.
I cant see that the payroll in on w1/m1 and I havent amended it to the 'alternative scheme' as moneysoft call it - which would be the same basis used for employees.
So Im stuck! Anyone got any ideas/can help????? Please.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I sure have Rob. I was merrily going along the lines of £833.33pm to use the full £10k, with the NI employment allowance, but the NI was nearly £600!! I just dont get it!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
The W1 / M1 shouldn't make any difference to the NIC. Try with the 'Alternative Scheme' box ticked and check the 'Claim NIC Allowance' in Employer Details under the 'Tax Office' tab.
I'd reluctantly start from scratch if still no joy : /
Response just rec'd from Moneysoft....
The NIC thresholds for directors are pro-rata'd upon the number of tax weeks they are a director for (even if they are paid monthly). So if they start being a director in September they will not get the full year's thresholds.
I didn't know that. Moral of the story, set your company up earlier in the tax year!!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Response just rec'd from Moneysoft.... The NIC thresholds for directors are pro-rata'd upon the number of tax weeks they are a director for (even if they are paid monthly). So if they start being a director in September they will not get the full year's thresholds.
I didn't know that. Moral of the story, set your company up earlier in the tax year!!
Down the bottom left (when you are in the "Pay Details" window) there is a "Click for explanation" box. If you had clicked on that (then NI) it will show the national insurance calculation based on the number of weeks in the year as a Director.
Aren't I a great one for coming up with a solution after the problem has been solved?
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Never buy black socks from a normal shop. They shaft you every time.
I didnt even see that box Peasie! I wouldnt mind but its not even a small box. As far as Im concerned - the more solutions, in different ways, the better. Certainly better than getting no help - so thank you.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
( very odd.
