UK Payroll - Auto updates for national Insurance category (NI)
It would be great if Xero could implement an automatic change/suggestion to change to category A after an H-category employee doesn't meet the criteria anymore.
One of our employees just had his birthday and I noticed the category doesn't automatically update and there's no flag to say they might now be ineligible for a certain code.
I imagine there are more companies with the same problem where it's gone unnoticed that the National Insurance Category hasn't automatically updated as nearly everything else does and it's easy to miss a birthday!
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Ella Warren commented
I think this would be vital
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Catherine Rogers commented
Can I add my "Please sort this asap" in relation to state pension age.
When you are preparing payroll for multiple clients, you won't know when the employees have reached the age. To check dates of birth manually each month is a time consuming task.
Many other software companies flag this automatically - like Sage & Quickbooks - so Xero - you are way behind the competition. -
Mark Johnson commented
My issue is the retirement age NI issue. Now have to go get a refund. Not looking forward to that.
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Kerry Ogden commented
Is a law and very important, so as not to charge / not charge correct NI.
Other payroll softwares flag this, as you would expect.
I charged a man who went over retirement age NI and it’s not easy to refund it
Xero please note, if you get NI wrong it’s a lot more difficult to correct than income tax
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Natalie Christie commented
This is an important function which needs to be added to Xero Payroll as soon as possible
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Robert Taylor commented
I work in the payroll software industry. Once upon a time a guy from HMRC used to stay with us for a couple of days to run loads of tests and I'm pretty sure this was one of the criteria to get us on the approved payroll supplier list. Sadly this rigorous testing no longer exists.
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Shona Rankine commented
Totally agree with the comments below - this should be automatic. Xero knows the persons birth date. How hard can it be to update from M to A when someone reaches 21 - or at least trigger a warning.
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Emma Gude commented
This would be such a great idea as at the moment it is something we need to be monitoring.
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Karen Smout commented
I have an employee over state pensionable age so they should no longer be paying NI. Xero hasn't auto updated the NI category and I can't see how to do it manually, and there don't appear to be any guidance notes anywhere. Come on Xero, there's lots of us in the UK using the system, it needs to reflect our tax and NI rules!
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Karen Smout commented
Xero - how can you not sort this out? it's a tax rule in the UK, it shouldn't be down to voting and interest in it, it should be mandatory.
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Amanda Hines commented
Yes, had similar problem - assumed Xero would flag this with me, employee turned 21 in the month and should have changed from an M code to an A code!
I'm lucky as only a small number of payrolls but is easily missed. -
Linda Kennedy commented
Would help to reduce the chance of errors