Director NIC

[cyber-guard]

Hello everyone, I am just little unclear about the NIC and self assessment when being a director; when I was self-employed I registered with my NI number at the HMRC, do I use the same account and hence same NI number, used for my self assessment when I was self-employed, to fill out the self assessment and handle NIC as a director of the new company? Regards Simon

 

[MyAccountantOnline]

Hello everyone, I am just little unclear about the NIC and self assessment when being a director; when I was self-employed I registered with my NI number at the HMRC, do I use the same account and hence same NI number, used for my self assessment when I was self-employed, to fill out the self assessment and handle NIC as a director of the new company? Regards Simon

Hi Simon

Yes you keep and have just one NI number.

 

[cyber-guard]

Hi Simon

Yes you keep and have just one NI number.

Just to re-iterate, so I will be using the same account at HMRC website I used for my self-employment before, correct?

 

[David Griffiths]

Just to re-iterate, so I will be using the same account at HMRC website I used for my self-employment before, correct?

No.

NIC for employees - i.e. Directors - is dealt with through the PAYE system. You must set the company up as an employer, and apply NIC to the salary

The most common situation is that the director draws a low salary with no tax or NIC to actually pay, but which does secure credits towards state pension and other benefits. From April, you will have to make a filing every time that you pay yourself - normally monthly.

You should not be paying Class 2 NIC

 

[MyAccountantOnline]

Just to re-iterate, so I will be using the same account at HMRC website I used for my self-employment before, correct?

Can you clarify what you mean?

You keep the same NI number but how you pay tax and what NI you pay now will be different.

 

[Ola1]

do I use the same account and hence same NI number, used for my self assessment when I was self-employed, to fill out the self assessment and handle NIC as a director of the new company? Regards Simon

It depends on what you do:

Case 1:
You take no salary and do not set up PAYE, just taking dividends, well you do carry on with the same details to deal with tax and NIC, via self assessment

Case 2:
You do set up PAYE as mentioned above, well then you must now handle NIC and Tax via the PAYE regime, however, you may also be required to fill out a self assessment by hmrc, hence you still use the UTR and other tax office details related to self assessment. Unless they are changed to new ones by hmrc

 

[David Griffiths]

Case 1:
You take no salary and do not set up PAYE, just taking dividends, well you do carry on with the same details to deal with tax and NIC, via self assessment

How would NIC come into it?

 

[Ola1]

You're right off course, scratch NIC for that senario

 

[Tom McClelland]

You're right off course, scratch NIC for that senario

Not many people would dare to tell David that he is "off course".

 

[MyAccountantOnline]

Not many people would dare to tell David that he is "off course".

 

[Ola1]

man this is not ma day

"of course"

 

[David Griffiths]

Not many people would dare to tell David that he is "off course".

Off his trolley, frequently. Off course, not so often.