'Company directors – payroll and you', will take place at 11.45am on 5 February 2024.
The Autumn Statement announced a cut to the main rate of National Insurance for employees from 06 January 2024. For paydays on and after this date, employee National Insurance will be calculated according to the following percentages:
|
Band
|
Standard
|
Pensioners
|
Reduced
|
Deferred
|
|
Table Letters
|
A / F / H / M and V
|
C / S
|
B / I
|
J / L and Z
|
|
Earnings up to LEL
|
NIL
|
NIL
|
NIL
|
NIL
|
|
Earnings between LEL and PT
|
0%
|
NIL
|
0%
|
0%
|
|
Earnings between PT and UEL
|
10%
|
NIL
|
3.85%
|
2%
|
|
Earnings above UEL
|
2%
|
NIL
|
2%
|
2%
|
There is no reduction in the main percentage that applies to employers.
For directors on an annual earnings basis, there is a ‘blended’ rate of 11.5% for the whole tax year. Perhaps, then, HMRC’s announcement of a webinar on 05 February 2024 at 11:45 is very timely. It will cover the following topics:
- Director's responsibilities
- Director's and PAYE
- Expenses and benefits
- Keeping records
- Income Tax and National Insurance that directors pay
- Payroll information that must be submitted to HMRC
For Bookkeepers
ICB recommends you register for this webinar and come prepared with questions about this blended rate of 11.5%, for example:
- What happens if a director has already been paid in tax year 2023/24?
- What about directors that have left, is there a need for a backdated calculation?
This is the time to register and pose the questions that will be faced in the coming months.
