How to manage National Insurance

Introduction

It is important that your business manages National Insurance contributions (NICs) correctly.

As an employer (or if you are treated as an employer if the actual employer is outside the UK), you have a legal obligation to account for your employees' NICs. As NICs fund social security benefits for your employees, it's essential to make correct payments within the time limits for any given tax year. Any right of your employees to claim benefits can be affected by the non-payment or late payment of NICs, and mistakes with your NICs may lead to HM Revenue & Customs (HMRC) taking action against you. You should also be aware that late payments of PAYE (Pay As You Earn) income tax and NICs are subject to interest.

This guide outlines your obligations on NICs, and offers practical advice on how to stay on top of your payments. It also tells you where you can find detailed information on organising and paying your National Insurance.

Subjects covered in this guide

• Introduction
• National Insurance calculation methods
• Checklist: avoiding common mistakes with National Insurance
• What records do I need to keep for National Insurance contributions?
• National Insurance contribution payment methods
• Payment dates for employers
• Late payment penalties

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