Employees National Insurance

Employees National Insurance is the amount that is deducted from an employee by an employer, this amount of deduction is then paid over to HMRC who collect revenue on behalf of the Government. As with all employment taxes, Employees National Insurance is not optional, everyone who qualifies (most of us) has to pay it.

Notable exceptions are pensioners as Employees National Insurance is notionally supposed to pay for the country’s welfare system; however, there is no direct link between the money raised and the money spent.

There are many different Employee National Insurance codes and they mean many different things. Details of the various codes and rates can be found on the HMRC website below

Employees National Insurance 15-16

In summary, for the vast majority of people who are on employee national insurance code A the following applies:

Earnings under The Primary Threshold of £155 per week no contributions

Between the Primary Threshold and Upper Earnings Limit (£815 p/w) the rate of employee national Insurance is 12%.

Above the Upper Earnings Limit the additional rate is 2%

As with all other employee withholding taxes the employees national insurance contributions are deducted from the gross pay of the employee and paid over to HMRC along with the PAYE income tax and the employers nation insurance contributions.

The monthly reports that PGA Payroll Services prepare for our payroll clients detail all these amounts and we ensure that you pay the accurate amount.

We supply monthly reports detailing the PAYE and National Insurance payments that should be paid and we attach these to an e mail which provides the date by which they should be paid.

All annual payroll returns are made electronically and year end P60 statements of earnings are
provided in hard copy for you to distribute to your staff. We are prepared for the introduction of Real Time Information and will guide our clients through this process when it is introduced in April 2013.

We are copied in on any correspondence from HMRC so you can be confident that if you miss anything important, we will catch it and bring it to your attention.

All our dealings with HMRC are electronic so there is no more arguing with them about whether a p45 was prepared, we can prove it was. By getting your payroll services right first time we ensure that the only dealings you have with HMRC will be paying them PAYE and NI once a month

You can call us on 01666 822256 or you can use our instant quote tool

and see for yourself how little PGA Payroll Services will cost.