Your State Pension will be calculated entirely under the new State Pension rules. You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension and you’ll need 35 qualifying years to get the full new State Pension. You will get a proportion of the new State Pension if … Read more
If you get paid through a Pay as You Earn (PAYE) system your National Insurance contributions will be automatically deducted from your salary by your employer, so you won’t need to do anything. It applies to each pay period whether you get paid weekly, monthly, or a different time period. If you are self-employed your … Read more
National Insurance is mandatory and payable if you’re 16 or over and are either an employee earning above £184 a week or self-employed and making a profit of £6,515 or more a year.
Your National Insurance contributions are paid into a fund, from which some state benefits are paid. This includes the state pension, statutory sick pay and maternity allowance, plus entitlement to some additional unemployment benefits. A percentage of National Insurance Contributions also go towards funding the NHS.
National Insurance is a tax levied by the government on the wages of employers, their workers and those who are self-employed. National Insurance is often abbreviated to NI, or NIC , where the ‘C’ stands for contributions. Different people pay different kinds, or ‘classes’, of National Insurance.
You will get fined from April 2014 by HMRC. For more information on RTI and how to avoid being fined, please contact us.
From your first pay date on or after 6 April 2013. So for example if you pay your employees weekly every Friday, your first RTI submission is due on 12 April 2013. If you pay monthly on the last day of the month, your first RTI return is due on 30 April 2013.
The way that you calculate PAYE, pay your employees and make payments to HMRC is NOT changing. The main difference will be how and when you report your payroll information to HMRC. Instead of sending your information to HMRC once a year (via a ‘P35’ and ‘P14s’) you are required to send RTI returns each … Read more
HMRC is introducing RTI in order to modernise the Pay As You Earn (PAYE) system and keep pace with changes to modern working patterns. Nowadays, many people have more than one job, and can change jobs more frequently. This means people sometimes pay the wrong amount of tax. RTI provides HMRC with up to date … Read more
From 6 April 2013 employers will have to start reporting PAYE information to HMRC in real time, known as Real Time Information – or RTI. In practice this means that employers will have to send details to HMRC every time they pay an employee using payroll software to send the information electronically as part of … Read more