How will directors be affected?

National Insurance for Directors on an annual basis will be calculated using a single annualised rate, regardless of when the calculation is being performed.

Directors on a pro-rata basis will use the NI rate in effect on the process date, and then in their last pay period of the year, it will switch to the annual calculation as usual, and use the annualised rate.

How will directors' NI recalculations work at year end?

The year end recalculation will use the annualised NI rate, rather than the rate in effect on the date of processing. 

What happens if I need to reprocess earlier periods?

If a pay period for a director on an annual basis is reprocessed, the annualised rate will be used.

If a pay period for a director on a pro-rata basis is reprocessed, the rate in effect at the time you originally processed the period will be used. 

What are the rates being used?

To check what rates are being used follow the steps below - 

1. Click Company and then Legislation.
2. Click NI.
3. If the NI bandwidths and rates effective from dropdown, select the relevant option.
4. Select Directors in the For dropdown. 

The rates will then show correctly.