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Revision help from other Payroll students

  • 9 posts
  • # 112232

Hi, 

 

I was wondering if there were any current or past payroll students that would be able to assist me with some areas of difficulty before I resit my exam? 

 

Kind Regards

Chrissy :)  

  • Associate PM.Dip
  • Practice Licence
  • 83 posts
  • # 112258

Hi Chrissy

 

If I can help you I will - you can ask your questions on here or e mail me on prkcarole@aol.com. I passed the payroll exam last October so its still quite fresh.

 

regards

CAP xSmile

  • 9 posts
  • # 112262

Hi, 

 

That would be great thank you my main area of stuggle is the Director NI eg question below: 

 

Q. Suppose that instead of receiving a bonus in month 2, L. Meena, a company director received her regular salary (£36,000) all year apart from March when she received a bonus of 5,000. Assuming all previous amounts had been paid, calculate the Employer and Employee NI that would be due to be paid to HMRC in April for L. Meena.


Would I be rite in my answer below: £36,000 / 12 = £3,000

April-Feb = all paid

March = £3,000 + Bonus £5,000

£3,000 + £5,000 = £8,000 x12% = £960 Emp’ee NI due

                                                                 X13.8% = £1104 Emp’er NI due

 

I know that as a director she only has to pay NI after reaching the PT but as this is the end of the year she would have already gone passed the PT, or do I have to take this off everytime? 

 

Any help would be appriciated

Kind Regards

Chrissy :) 

 

  • Associate PM.Dip
  • Practice Licence
  • 83 posts
  • # 112267

Hi Chrissy

 

You are not quite right. I assume that you are looking at the mock 'Lucky Lamps' which was tax year 2013-2014. so using the Table Method. 

Table A regular salary £3000/month equates to employees N.I contribution of £282.36 per month x 11 months = £3105.96

L Meana has an average salary of £36,000 + Bonus of £5,000 = £41,000/12 = £3,416.67

according to Table A N.I contributions on £3416,67  should be £332.28 x 12 = £3987.36.

Amount already paid = £3105.96 therefore amount of employees N.I to pay = £881.40

 

Similarly Eployers N.I contributions are £4593.72 less already paid £3579.40 = £ £1014.32 still to pay.

 

send me your email address if you would like a copy of the relevant pay table and I'll email it to you 

I know it's complicated but it's not too bad once you get your head around the pay tables.

regards

Carole

 

  • 9 posts
  • # 112274

Hi,

 

Yes silly me I should have mentioned I was basing the question on 2014/2015 figures as my exam is on that year; she is also a director so does she not start paying NI till her earning reach over £7956

 

Kind Regards

Chrissy :) 

  • Fellow
  • Practice Licence
  • 33 posts
  • # 112278

Hi Chrissy,

 

I had that mock and it is indeed 2013/14 as suggested before, but I have practiced different years and it is the method I guess you have to get down to then it won't matter which year it is. Have you not been provided with the answers as well when you got the mock?


Reedy

  • Associate PM.Dip
  • Practice Licence
  • 83 posts
  • # 112283

Hi Chrissy

 

I think you need to look at the directive on the papaer, ity says The Directors pay N.I using the table method. I think your confusing the accumulative method where No N.I is paid until the threshold is reached and the Table method where an adjustment is made at the end of the year. with the table method you don't need to work it out - its already done for you, you just need to look on HMRC's website at the relevant table for the relevant year and like my previous example, make the adjustment.

 

hope that all makes sense to you 

 

kind regards

Carole

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