Accounting Journal

Accounting Journal

Calculating a director's National Insurance contributions

Asif Patel's avatar
Asif Patel
Jun 25, 2025
∙ Paid

For most employees, National Insurance contributions (NIC) earnings periods are calculated based on their regular pay intervals. In contrast, all directors have an annual earnings period, regardless of their actual pay intervals, where contributions for the year are calculated by reference to the annual NIC thresholds.

There are two methods of calculatio…

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