National Insurance guidance for software developers (2020 to 2021)

04 August 2020

HMRC has published National Insurance (NI) guidance for software developers for tax year 2020-21.

The guidance is made available each tax year, and its purpose is to provide NI calculation methods for payroll software developers. The contents include:

  • Introduction
  • NICs information for tax year commencing 6 April 2020
  • Completing the payroll record (2020-21)
  • Class 1A NICs on Termination Awards and Sporting Testimonial payments
  • Description of the differences between calculating NICs
  • Using the tables and the exact percentage method
  • Rules for rounding
  • NICs calculation formulae – exact percentage method
  • Directors NICs calculation formulae
  • NICs calculation formulae – tables method
 

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