What National Insurance letter should I use for my
employees?
If you are unsure which letter to use we advise you contact HMRC
for further guidance. The safest letter to use temporarily
would be Letter A.
My employee has become a Pensioner, what do I do?
Within the Employee Details > NI Details tab.
- Transfer the Current NI values to Previous using the red
transfer arrow.
- Change the Current NI letter to the new letter. (If on reaching
retirement age then letter C is used and always not contracted
out.)
- Change the Current Since Tax Week to the tax week number from
which the change should apply. (if the employee has reached
retirement age, then table letter 'C: Pensioner' should be used;
Please note that if you use this Table Letter a Date of Birth MUST
be entered).
My Employee has become a Director part way through the year,
what do I do?
Example: Mr Smith was an employee from the start of the tax
year. He is appointed a director commencing in tax week 12 (even if
he is paid monthly, the director annual or pro-rata rules require
week numbers to be used rather than a month number). For purposes
of this example, his contributions are based on Table A
throughout.
- In the Employee Details - General tab, flag him as a director
Since tax week 12.
- On the Employee Details NI tab, transfer the Current NI values
to Previous.
- At the foot of the Current NI column, change the Since Tax Week
to 12.
The system will then compute directors NI for the current letter
on a pro-rata annual basis, whilst leaving the previous
non-director earnings unchanged.
Are you still experiencing difficulties? Please contact
Support for further assistance.
