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Posted Thu, 24 Nov 2022 15:28:39 GMT by Josh Lyons
Hi, We have an employee who has shared in the company, and he has had them vested in October. We are going to put the payment through the payroll in November however as the NI Rate has changed we are wondering what rate the NIC should be calculated on. As they were vested in October will he pay NIC at a rate of 3.25%. As they will be paid out in November will he pay an NIC rate of 2%? Could you also direct me towards some guidance on the subject in writing i.e. on a manual or if there have been any press releases? Thanks.
Posted Mon, 28 Nov 2022 14:10:06 GMT by HMRC Admin 17

National Insurance is deducted at the time of payment. 

Therefore, if the individual is being paid out in November and the rate at that point is 2%, that is the rate to use.

Thank you.

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