Directors NIC

Directors NIC There are two main methods for calculating National Insurance Contributions for a director : the ‘Standard Annual Earnings Period‘ method, and the ‘Alternative arrangements‘ method. Both methods result in a director paying exactly the same amount of National Insurance over the course of a tax year, although one method may be more suitable…

Payrolling Benefits in Kind (PBIK)

Payrolling Benefits in Kind (PBIK) Since April 2016 employers have been able to to utilise a new (voluntary) HMRC online service – ‘Payrolling Benefits in Kind (PBIK)’, which changes the way in which expenses and benefits are taxed and reported to HMRC. HMRC guide Payrolling Benefits in Kind gives detailed information about this new service.…

Week 53 Payments

Week 53 payments, tax calculations and P800 letters. Background Most employees (¹) are entitled to a certain amount of pay before paying tax. This is called the ‘Personal Allowance’. In 2020-21 the personal allowance was £12,500. When calculating PAYE tax, the Personal Allowance is divided by the usual number of pay periods in the year…

HMRC Error Messages

Common HMRC error messages If you are attempting to file an online submission to HMRC and are getting a failure message then please be aware that these messages are generated by HMRC and not by Moneysoft. We have published a list of common errors below which may help you resolve the problem. Please note that…