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:
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.
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'.
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