National Insurance for Directors

A normal PAYE employee will have National Insurance contributions deducted from their PAYE earnings throughout the year on a fairly even basis.

National Insurance (NI) can be calculated slightly differently for a Director of a limited company.  In this case, NI is only due once the director's PAYE earnings has exceeded the NI threshold for the year as a whole.

The effect of this is that NI deductions may not be made for the first few months of the year, then, once the total PAYE payments for the year have reached the threshold, the deductions begin.