1. What is Company National Insurance?

Company National Insurance (NI) is a tax paid by employers on their employees' earnings above a certain threshold. It's calculated as a percentage of payroll and contributes to state benefits.

2. How Does the Calculator Work?

The calculator uses the Company NI formula:

Where:

• \( \text{Payroll} \) — Total employee earnings subject to NI (in GBP)
• \( \text{NI Rate} \) — Current National Insurance rate (as percentage)

Explanation: The calculation multiplies the payroll amount by the NI rate (converted from percentage to decimal).

3. Importance of NI Calculation

Details: Accurate NI calculation is essential for payroll processing, budgeting, and compliance with UK tax regulations. Underpayment can result in penalties.

4. Using the Calculator

Tips: Enter payroll amount in GBP and NI rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the current Company NI rate in the UK?
A: Rates vary (typically 13.8% for most employees) and may change annually. Check HMRC guidelines for current rates.

Q2: Are there different NI rates for different employees?
A: Yes, rates may differ based on employee age, employment type, and earnings thresholds.

Q3: Is NI calculated on the entire payroll amount?
A: No, only on earnings above the Secondary Threshold. This calculator assumes all entered payroll is subject to NI.

Q4: When is Company NI paid to HMRC?
A: Typically paid monthly or quarterly as part of the PAYE process.

Q5: Can this calculator be used for self-employed NI?
A: No, this calculates employer contributions only. Self-employed NI uses different calculations.