Employer NICs

Gill Gittings
Gill Gittings Well-KnownRegistered Posts: 121
Hello I'm having a blonde moment again :)
In Ltd co accounts does employers national insurance on directors salaries get included in remuneration? My manager has asked me to move it into remuneration but I've always included it seperately.

Any help gratefully appreciated.


  • Monsoon
    Monsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I always include it in the employers ni account, not the directors reumeration. I dunno if that's right but its logical to me!
  • Steve Collings
    Steve Collings Experienced Mentor Registered Posts: 997
    You should not include employers' NIC on directors remuneration within directors remuneration because this will distort the disclosure note that is required in the notes to the accounts (presuming you are using computerised accounts production software). Only remuneration and benefits should be included and as the director derives no benefit from employers' NICs it should not be included, but disclosed separately directly underneath directors' remuneration.

    You should therefore stick to your guns, Gill.

    Best wishes
  • burg
    burg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    With Steve on this. It should definitely be disclosed separately as employers ni.

  • Monsoon
    Monsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Thanks Steve and Ian, glad to hear it!
  • Gill Gittings
    Gill Gittings Well-Known Registered Posts: 121
    Awww thanks guys.

    At least I know I'm not completely thick!

    xx :)
  • deanshepherd
    deanshepherd Font Of All Knowledge Registered Posts: 1,809
    It's entirely up to the company where this is disclosed in the detailed profit and loss account.

    It should not be included in the statutory directors remuneration note as mentioned above.
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