Directors appointed during the Tax Year

Directors first appointed during the tax year have a pro rata annual earnings period for the remainder of that tax year. 

The number of weeks in the pro rata annual earnings period is:

• the tax week of appointment, and
• the remaining tax weeks in the tax year

There are 53 weeks in the tax year but 52 weeks are used when working out the pro rata period. However,  if someone is appointed in week 53 the pro rata period is 1 week.

Example

A director is appointed in tax week 30.

The number of weeks in the pro rata annual earnings period is 23 weeks and the director will therefore have the following pro rata annual NI thresholds:

Pro rata annual LEL £2,576

Pro rata annual  PT £3,565

Pro rata annual  ST £3,588

Pro rata annual UAP £17,710

Pro rata annual  UEL £18,748

Pro rata annual UST £18,748

Simply click this link to access HMRC's 'Quick Guide to Pro Rata Annual Earnings Periods'.