Change Employee NI Letter

Karishma Updated by Karishma

When in an employees record in the Manage Employees left menu option, navigate to the NI & Tax tab

Expand the National Insurance card by clicking on it.

There are two different ways of changing an employees NI letter:

  1. If an employee hasn't been paid in the current tax year
  2. If an employee has been paid in the current tax year.

Changing NI Letter when an employee hasn't been paid in the current tax year

In this scenario, you need to click the edit icon on the open card:

Next select the Ni letter from the dropdown and click Save changes.

Changing NI Letter when an employee has been paid in the current tax year

In this scenario you need to click the Change NI letter button:

This will present a side modal:

There are three options available here:

  1. Change to a new NI Letter - This option allows you to change to a new NI letter for the next payroll period
  2. Change to a new NI letter from the start of tax year or employment - This option allows you to change NI letter backdated to a date. As well as a new NI letter you will need to populate the Backdate to field. Payroll will calculate any adjustment to be made on the next payroll
  3. Undo a previous NI letter change - This will undo the latest NI letter change that was input.

If any options are unavailable for the employee selected, then that option will be greyed out in the dropdown.

When changing NI letter you also have the option of checking the Directors NI box and keying in the Date of appointment. This will change the NI calculation for this employee to directors NI.

NI letter history

When an NI letter has been changed, the history for the current tax year is stored in the NI letter history tab in the National Insurance card on an employees record. You are able to change NI letter 3 times within a tax year (this limit is set by HMRC). The current NI letter (NI letter 1) will move to NI letter 2, NI letter 2 will move to NI letter 3 and so on. NI letters 2 to 4 (if present) will display on the NI letter history tab.

A change to a fifth NI letter will not be allowed and in that instance only the Undo a previous NI letter change option will be available

Veterans NI

If NI letter V is selected, then an additional input box is required for the Veteran start date.

Errors

If the NI letter cannot be used or any dates are invalid, an inline error message will display.

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