Payroll Year End - on Sage

[weebly_one]

I have just paid the final salary of the yearn in Sage Payroll for a company, and printed out P11's as part of the year end routine.

There are 2 empoyees - both directors using Directors Table method for NI. One employee had a 2nd job for the first 9 months so just paid themselves £100 per month from April to November. Then from December they came back to work full time for this company so upped wages to £450 in December . Then £550 per month from January.

In Month 12 there is an NI adjustment - which I would expect from the table method - except it seems to have refunded all the NI paid in Jan and Feb, and although the employee record say they are NI Category A, the Sage P11 says X and has this refund in March.

Is this correct behaviour or has my software had a funny? It would make sense that in this company if you take the 12 month average no NI should have been paid - but why is the NI category down as X on the P11?

Thanks for any help in advance.

[weebly_one]

Is nobody able to help?

[Alison Jones]

I have a feeling that NI Category X has something to do with tick box on sage if someone is a Director. Have you got sage support, normally they can help you with that sort of enquiry.

Alison

[weebly_one]

Thanks Alison - it is embarassing as I am a Sage Reseller so I can call Sage, but although they are experts on the software they are no so hot on the legislation aspect sometimes.

[Tom McClelland]

At a guess, from the information supplied, directors NI rules have applied in March, which resulted in a refund of all NI paid as the annual total of pay did not reach the annual Earnings Threshold.

Where earnings don't reach earnings threshold in any period (or in the year as a whole for directors) the zero value line is shown on the P60 as table X.