Why is my director not paying any NI?
Remember, if you flag someone as a director from the start of
the Tax Year they will be subject to annual earnings limits. This
means they will not pay any NI until they earn over the current
Annual Earnings Threshold. Once they reach this they will pay NI on
all of their NIable earnings until they reach the Annual Upper
Earnings Limit.
From April 2003 Directors will also have to pay an extra % on
earnings above the Upper Earnings Limit, whereas before
contributions would stop at this point.