How do I set Up Directors National Insurance (NI) in the System?

If you have a director in your company who requires a special NI calculation as a director, it is essential to ensure that your system calculates their National Insurance correctly. Follow the steps below to set up Director's National Insurance:

Accessing the Tax and NI Screen

1. Navigate to Forms in your main menu or dashboard.
2. Click on the Tax and NI option. This will bring up the Tax and NI screen.

Setting Director's NI

1. Once you're on the Tax and NI screen, go to the second tab labelled National Insurance.
2. Scroll to the middle of the pane, where you will find an option for Director's Status. Click this.

Specify the Calculation Mode

1. Tick the checkbox next to "Calculate NI as Director in Tax Year". This ensures that the system calculates the director's NI according to the specific rules for directors.
2. Input the From Date. This should be the date when the director's role commenced.
3. Tick the checkbox for "Treat as Director on Account". This ensures that the director is recognized in the system as having a director's status for accounting and taxation purposes.

Adding a National Insurance Category

After completing the steps mentioned above:

• If you add a national insurance category (for instance, A - standard), the system will automatically determine and calculate the national insurance for that director based on the rules specific to directors' NI.

By following these steps, you can be confident that your system is calculating the correct National Insurance amount for directors in your company. If you encounter any issues or need further clarification, please refer back to this help article or contact our support team.