First, the type of director needs to be defined before confirming whether national insurance contributions (NICs) can be applied.

There are two possible exemptions under which the director is not treated as an employee for either tax or NICs, further detail can be found in the module.

By completing this module on director’s NICs covering the annual earnings period, you will be able to:

• Identify a director in order to determine whether the special NIC calculation rules may apply;
• Check if a concession applies in order to decide whether an alternative treatment may be applied for NICs (and possibly PAYE);
• Assess the annual or pro-rata earnings period in order to correctly identify the basis applicable to directors, including new appointees and resignations; and
• Calculate NICs on an annual or pro-rata basis to perform accurate NICs calculations and ensure compliance with HMRC requirements.

This CPD module takes 20 minutes to complete and is followed by a short quiz to ensure thorough learning. There are also detailed course notes to ensure a full learning experience. Any CPD learning is also automatically added to Your CPD Tracker.

The CPD course lecturer is Martin Jackson ATT, team leader for the tax & payroll advice lines at Croner Taxwise.

Play the CPD module here

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