I am doing MBA final year and making project report on the topic Limited Company Director National Insurance Contributions want to know more about this. Will you provide basic details about Limited Company Director National Insurance Contributions also provide contacts?

[prince karak]

Limited Company Director National Insurance Contributions

Directors are classed as employees and pay National Insurance on annual income from salary and bonuses over £8,164.

Contributions are worked out from their annual earnings rather than from what they earn in each pay period. There are different rules for tax on dividends.

Standard annual earnings period method
This method is common for directors who are paid irregularly.

Each time you pay a director, work out their National Insurance for their total pay over the tax year so far, including bonuses.

To work out what contributions they now owe, take off the total employee National Insurance they’ve paid so far this year.

Alternative method

This method is common for directors who are paid regularly.

Each time you pay a director, work out their National Insurance only on their pay for that period, including bonuses.

At the end of the tax year, use payroll software to work out whether more employee National Insurance is due and deduct it from their last payment.