UK Payroll: Alternative NI Calculation type for directors starting mid-year
When adding a Director to payroll midway through the year the status can only be set to 'Annual'
It would be great if we were able to choose either 'Annual' or 'Alternative' Setting a new director on 'Annual' in January has affected their NI contributions. On Annual the NI does seem to vary but sort its self out by the end of the tax year. It just means paying more NI for a period of time.
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Megan Sadie commented
I am having the same issue. I am taking over the payroll from another provider in month 11. They have been on alternative in the previous software and directorships began in 2014. Now Xero won't let me choose Alternative and if I run the payroll on Annual it is refunding all their NI to date.
Xero have suggested a workaround to change the date directorship began for this tax year so that I can use Alternative, and then put the correct date back in in April.
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Julia McDaid commented
Very frustrating as he isn't a new director but I am taking over the payroll from someone else that has been running it this tax year. So far this year he was on the alternative system but xero won't let me continue this