Directors only - Employers NI

[jamiel]

Hi,

We have a business where the two directors are the only employees, and are paying PAYE aswell as NI Contributions at the lower earnings limit. We are paying employers national insurance for the amount equal to the two directors contributions, so essentially it feels like we are paying double NI when we are the only employees. Is this correct?

Thanks in advance,

Jamie

[RAL]

There are two types of NI payable for the payment above UEL threshold, employers nic and employees nic. So it would depends on how much the director are getting paid.

Employees NIC and paye should be deducted from Gross pay and director should be paid Net Pay. The employer should pay employers NIC on the salary paid to the director. All these deduction should be paid to HMRC on 19th following month or 22nd if paid by electronically.