Works out a company director's National Insurance on one payment using the annual method: NI on earnings for the tax year so far, less NI on earnings before this payment.
This calculator runs in your browser: nothing you enter is sent anywhere. It is a guide, not advice, and does not replace your payroll software's calculation.
How It Is Worked Out
- A director's NI is assessed on cumulative earnings for the tax year against annual thresholds: £5,000 for employer NI, £12,570 for employee NI, and £50,270 where the employee rate falls from 8% to 2%.
- The NI on this payment is the NI due on earnings including it, less the NI due on earnings before it.
- For a director appointed during the year, each threshold is multiplied by the tax weeks remaining (counting the week of appointment), divided by 52 and rounded up to the next pound.
- Count only earnings paid from the week of appointment. Pay received as an employee earlier in the year was assessed when it was paid and is left out.
The calculator assumes NI on the earlier payments was also worked out on the annual method. The background is in Directors' National Insurance: the annual method.