Completing an EYU in respect of Employee’s NICs

22 August 2018

HMRC has amended the guidance on GOV.UK to make it easier to understand when completing an Earlier Year Update (EYU) which includes a negative amount of Employee National Insurance (NICs).

The new guidance explains:

If the difference is negative (because you deducted or reported too much National Insurance), you also need to set the ‘NIC refund indicator’ to:

  1. Yes’ if you’ve refunded your employee or no refund was due

  2. No’ if you still owe your employee a refund (for example because they’ve left your employment).


This information was highlighted in HMRC’s August Employer Bulletin.