Install HMRC update to ensure correct NI deductions
The primary Class 1 NI threshold will increase on 6 July. How can employers using HMRC's Basic PAYE Tools ensure the change is reflected in their processing?
The Spring Statement included the announcement that the government was increasing the primary Class 1 NI threshold to £12,570. However, the change is convoluted as it will only take place from 6 July, meaning that the first three months of the payroll year had a lower (£9,880) threshold in place. We are just over a week away from the change date. If the employer uses third-party software to operater PAYE each month, their provider should have given them information on how to update the software to enact the increase. However, those that use HMRC’s Basic PAYE Tools (suitable for small employers, but not accountants) will need to remember to download the updated version on or after 6 July. The correct version will be 22.1 and will be available here.
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