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Where Taxpayers and Advisers Meet

Ni contributions on lump sum payment

Wildtypitch
Posts:1
Joined:Fri May 20, 2022 9:16 am
Ni contributions on lump sum payment

Postby Wildtypitch » Fri May 20, 2022 9:30 am

Hi, I'm in a situation where I have paid income tax on salary earnt as director of my own company. The whole sum was put through as salary and no dividends.
My tax advisor has put this thought as a lump sum payment on my self assessment. I had started a payroll because I believed this was the only way I could do it but I was told that's not necessary as lump sum payments have been allowed since....I can't remember the figure.
He was surprised when I told him no national insurance contributions have been taken from this calculation and that they still are outstanding for the 20-21 tax year.
I'm worried that I'm facing heavy penalties for not having put the payment through PAYE. I keep pressing him for an answer but I'm not getting replies. This is the second advisor I've employed after a similar experience with the first who wouldn't reply until a week before deadlines.
I have not seen any evidence that what he is doing is valid and I'm very worried about the penalties I might be incurring.
Can anyone put me at ease?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Ni contributions on lump sum payment

Postby robbob » Fri May 20, 2022 10:53 am

Your post is hard to make much sense of

Were you running your own payroll? - if you arent payroll expert i would saty well clear of diy - its easy to blame others but if you are propcessing items dont really expect antyone else to be holdsing your hands - the number of times clients have taken something we say as accountants and had turned it into something else entirely by clients making presumptions is numerous - and i go out of my way to be careful what i say when it matters.
but I was told that's not necessary as lump sum payments have been allowed since.
??? what is exactly was the advise and in connection with what lump sum what ? ? - are you getting confused betwen salary and dividends.

Note ensure you get any important advise at least in email if you will need to refer back to it later.

Note you can have 8832 years salary with no NI being due - so not impossible here that all is ok.

Ref advisors if tyhey arent proactive ditch em and find someone who does - have agreed level fo service - get them to email that and get them to confirm they will stick to their promises - or at least communicate well if there are delayed due to peak times (that can happen - fact of life is that work can be lumpy)


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