NIC Allowance 2015 & NI for under 21's

Question asked by Jon Iles 7 years ago


Will Payroll be updated to once again automatically account for the Employer Allowance of £2000 in the 2015 tax year and will it also account for changes to NI for under 21's?


4 Replies

Hi Jon,

We get all our figures and calculations from HMRC, therefore all the new allowances and rates will be calculated for the new financial year.


Just tried a test payroll run and Payroll is calculating Employer Contributions for NI on the under 21's - as far as I'm aware for this tax year under 21's do not qualify for employees class 1 NI - am I missing something? - not a system / tax expert - or does Payroll need to be corrected / adjusted to stop this?

Sorry - found answer on other forum update - need to change the NI code on each employee to either M or Z - have done so and now payroll running correctly - my mistake - thanks!

It would be really helpful if there was a flag on Open Payroll to ensure the correct NI code is used for under 21's.


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