As an employer you are responsible for deducting the correct amount of national insurance from the payments made to your employees. In addition employer’s national insurance contributions must also be made.
What is National Insurance?
National Insurance contributions are compulsory payments made by employees, employers, and the self-employed towards certain state benefits. The contributions are made at various different rates.
Payments are made if you are aged between 16 and the state retirement age and earn over £166 per week as an employee or have profits exceeding £6,365 as a self-employed person.
Employers must make National Insurance contributions for all employees who are over the age of 21 and earn in excess of £162 per week (£962 per week for those aged 16 to 21, or an apprentice under the age of 25). They must also make additional payments for certain benefits and expenses provided to their employees.
Most employers are eligible to claim the employment allowance, which is a reduction in the employer’s national insurance contributions of up to £3,000 per annum. This allowance must be claimed by submitting an Employer Payment Summary (EPS) (see What is the deadline for submitting information about income tax deductions below). For companies where the director is the sole employee, the allowance cannot be claimed.
What is the deadline for paying National Insurance to HMRC?
The amount that must be paid to HMRC is:
The income tax and national insurance reported in your Full Payment Submission FPS in the previous tax month
Less any reductions from your EPS which have been reported before the 19th of the current month.
Greater than £1,500
If the amount payable is greater than £1,500 per month, the amount is due by the 22nd of the month if paid electronically (19th if paid by post). For example an FPS was submitted on 31st May and an EPS on the 18th June, the amount is due by 22nd June if paid electronically.
Less than £1,500
The standard procedure is to pay monthly but that it may be possible to pay quarterly.
If the amount payable is less than £1,500 per month, the amount is due by the 22nd of the quarter if paid electronically (19th if paid by post).