Paying my national insurance where to pay it from?

[k100danny]

I wonder if anyone could help me out here, this is the first year i will have paid my salary as more than the ni threshold due to the ni scheme they have going this year it worked out slightly in my favour according to my accountant. I have asked a few times how to pay this and was told don't worry it's not due until next year and we will send you the details on how to do this when the time comes.

I have just received my wage slip from payroll with a payment slip for national insurance and it showing the deduction on my ware slip also.

it shows gross payy £833.33 and £45.28 in national insurance, now i have the slip so i assume i can pay this at the bank, my question is where do i pay it from? Do i just use my own money to pay this or is it acceptable to pay it out of the companies money? my first thought was pay it straight out of the business account but then i started to doubt myself thinking because i've paid myself the pay of £833.33 this month do i have to pay this out of my own money? Or am i just confusing myself haha.

I thought i would just get a bill of the total amount owed for the year and pay it in one go that's all.

 

[kevin.doran]

https://www.gov.uk/pay-paye-tax/overview

You can pay quarterly though so might as well wait till end of March and pay the whole £245.27 in one go to save messing around.

 

[njsemc]

I'm in a similar boat as this month is the first month that NI is due. This month, my gross 'salary' payment was £833.33 (as usual) but my 'take home' pay was £788.05 - this is what I transferred from the company account to myself.
If I understand it correctly, the company owes HMRC the £45.28 NI payment. I haven't worked out how to pay this yet though...

 

[k100danny]

Hi Kevin thanks for the reply, this is what i thought would happen, The thing is has only part of this months wage gone over the NI threshold is that why it is £45.28 as this is a wage slip up until 31st of jan so only two more of these in this tax year, will NI be over £100 each on those?

 

[k100danny]

also kevin if you could answer this for me.

I have a full time employee starting on the 1st of feb, my first full tie employee that will have to pay ni and tax. i pay someone to do payroll and they i assume will supply the wage slip etc, then do i have to send over the payment to hmrc each month for the tax and ni? I would have thought with the RTI think that hmrc would know what it was owed when this was submitted and i could just set up some type of direct debit/standing order to pay it so i don't have to worry about paying it on time? The less for me to do admin wise the better as i get worried sick that i have done everything correctly.

 

[kevin.doran]

The NIC threshold is £7956. You'd have been paid £7499.97 over the first 9 months, so in M10 (Jan) £377.30 would cross the line and be subject to 12% hence the £45.28. Feb will be £99.99 and March £100.

Re paying HMRC for the other employee - same payment details as linked above i'm afraid (still payable quarterly if you prefer). Would you REALLY trust HMRC to deduct the right amount from your bank account each month given the whole RTI mess? I wouldn't.

 

[njsemc]

Going back to the start of the thread, the original poster said that he had paid himself the full £833.33 this month.
Is this correct? or should the NI been deducted at source (i.e. should he have paid himself £788.05, with the difference being paid over to HMRC from the company account?

I'm not sure that I've done the right thing myself this month...

 

[kevin.doran]

Salary to the P&L will still be £833.33 each month, the net received will reduce though (with the balance going to HMRC as above).

Jan net paid £788.05
Feb £733.34
Mar £733.33

 

[Newchodge]

Going back to the start of the thread, the original poster said that he had paid himself the full £833.33 this month.
Is this correct? or should the NI been deducted at source (i.e. should he have paid himself £788.05, with the difference being paid over to HMRC from the company account?

I'm not sure that I've done the right thing myself this month...

This should be clear on the payslip. If it is not, you need to talk to your payroll provider.

The payslip should state something like

Gross pay £833
Employee NI £45.xx
Employer NI £50.xx
Net pay £790.xx

The company pays you the net amount.

You should also have a copy FPS that shows how much is owed to HMRC, which should also show that the Employer's NI is not payable because of the allowance, and how much is payable to HMRC.

 

[njsemc]

This should be clear on the payslip. If it is not, you need to talk to your payroll provider.

I am the payroll provider. :-(

 

[Newchodge]

I am the payroll provider. :-(

Perhaps you should consider a professional payroll provider. Drop me a PM if you would like a quote!

 

[k100danny]

Thanks kevin, haha I suppose trusting hmrc isn't the best thing to do judging by some of the run ins I have had with them i just thought with the payroll it was something that was submitted by my accountants and therefore the amount would be correct.

I had already paid myself the full amount but i always try to come in just under what my actual salary is in payments so i will just pay thing from the company, my wage slip does show the deduction but i am in front with payments for salary and was told the wage slip etc was a formality and it didn't have to be drawn out on a certain date etc. i did also get a letter showing ni due and the deduction for the employers ni thing they are running at the moment.

Thanks for the help, i guess i will just have to remember to pay it on time but i will just do it when instructed by payroll.

 

[john1989]

Perhaps you should consider a professional payroll provider. Drop me a PM if you would like a quote!

Ouch.

 

[Newchodge]

Ouch.

If you read the whole thread, you have an individual running his own payroll who clearly doesn't understand how to do it. I was merely making a logical suggestion, having earlier explained exactly what should happen!

 

[john1989]

If you read the whole thread, you have an individual running his own payroll who clearly doesn't understand how to do it. I was merely making a logical suggestion, having earlier explained exactly what should happen!

I know. It was a poor attempt to emphasise your point - I humbly apologise.