Employing People

National Insurance Contributions for Employers (NIC)

Does National Insurance Apply to You?

If you employ someone, you will be responsible for taking tax and Class 1 National Insurance Contributions from their pay and paying these to the Inland Revenue. You will also be responsible for payment of Class 1 employer’s National Insurance Contributions.

LaiPeters & Co can calculate these as part of our payroll service. However, you can process the calculations yourself either manually or using one of the many payroll packages available.

When do I have to start deducting NICs from my employees'  wages?

NICs should be deducted from an employees' wages providing:

  • They are over age 16;
  • They are under state retirement pension age; and
  • Their earnings are above the Lower Earnings Limit (LEL)

How do I calculate the NICs due?

By using the National Insurance tables supplied in the Inland Revenue Employer's Pack. The tables calculate NICs for both weekly and monthly paid employees.

Where do I send the money? When must I send it?

Payment of NICs are made along with Income tax to the Inland Revenue Accounts Office and are due to be paid by the 19th of the month following the month of deduction.

What detailed information/help is available to help me get the National Insurance correct?

You will have already been provided with employer's manual and National Insurance topic related help cards as part of the Employer's Pack distributed when your PAYE scheme was opened. You can obtain further help/advice from the Employer's Helpline, telephone number 0845 7143 143.

For how long do I need to keep payroll records?

You have to keep the current tax year's records and the three previous tax years.