Payroll rti help

[Deleted User]

Hi

I have recently submitted payroll data for a client using the RTI (thought I might get some practice in before April) but for some reason it is generating NIC on a salary of £624 in the final month.

The client was an employee up until 26/10/12 and left to become self employed. I set him up as a Ltd company (from S/T) on 17/01/13 and entered his P45 info from 26/10/12 into Sage Payroll Tools. I paid him £624 on 31/01/13, 28/02/13 and 31/03/2013 but in the final month it has generated NIC for both employee and employer and I am not sure why? He has been set up the normal way for NIC and not cumulative.

Any ideas?

Thanks

groundy

Did you set him up as a Director? If yes this would be the reason for the NI in final month

[Deleted User]

groundy wrote: »

Did you set him up as a Director? If yes this would be the reason for the NI in final month

But that doesn't explain why I had another client who did the same thing, earned more from previous employment and incurred no NIC. In both situations, they were set up as directors.

peaman

I assume you entered the directorship starting on 17.01.13.

The problem is that the director has been paid for 3 months (13 weeks) but he was only a director for 11 weeks!

You can now practice how to make amendments under RTI, just re-run the payroll and pay him 2 weeks less. How easy will that be under RTI?

If you want to make the adjustments for what I assume is a small amount of niee/nier (about £34)!!

[Deleted User]

peaman wrote: »

I assume you entered the directorship starting on 17.01.13.

The problem is that the director has been paid for 3 months (13 weeks) but he was only a director for 11 weeks!

You can now practice how to make amendments under RTI, just re-run the payroll and pay him 2 weeks less. How easy will that be under RTI?

If you want to make the adjustments for what I assume is a small amount of niee/nier (about £34)!!

Worked a charm, thanks.