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NI Rate X is showing on employees P60

HMRC expects an X code to be entered if the employee’s earnings are below the Lower Earnings Limit (LEL) for national insurance, irrespective of the national insurance code allocated to the employee.

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No P60’s produced for leavers

At the end of the tax year none of the leavers in KashFlow have had a P60 produced. This is correct. Only active employees at the end of the tax year will get a P60. For any leavers during the tax year the P45 issued at the time of leaving replaces the…

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Small Employer Relief: Statutory Payment Recovery & Compensation

Small Employer Relief Status A companies small employer relief status will dictate what they can claim from HMRC when paying employee statutory payments. A company would qualify for small employers relief if the total NIC (National Insurance Contributions) bill (Ee’s + Er’s) for the previous tax year is less than…

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What is a Week 1 / Month 1 Tax Code?

What is a week 1/ month 1 tax code? How is this calculated differently from a normal tax code? When you use the option week 1/ month 1 with a tax code the software will calculate an employees tax based only on the taxable pay they receive in that pay period and…

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What to do if you have no NI number for new starter

The lack of an NI number on an employee record will not prevent you from sending an FPS. If you do have a new starter and no NI number make sure you complete the rest of the personal details accurately as HMRC will use these to confirm the NI number with yourselves.…

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