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Why is the employee's NI figure zero?

There are three common reasons for this:

  1. The NIC table letter is set to C, S or X.
  2. The employee's pay for this period does not exceed the Primary Threshold.
  3. If the employee is a company director, the NI is calculated over a longer period - typically a year. This often leads to zero NI in the first few periods of the year and then higher NI figures later in the year. For more information, see HMRC Help Book CA44.

The Primary Threshold for 2023/24 is

  • £242 per week.
  • £1,048 per month.
  • £12,570 per year.

The Primary Threshold for 2022/23 is

  • £190/wk (£823/m) before 6 July.
  • £242/wk (£1,048/m) from 6 July.
  • £11,908 per year for company directors.

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