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Q: I have a Director client who is being paid an salary payment in June 2022 and when the payment is put into the payroll software it is applying a primary NIC threshold of £11,908. Is this correct as the new NIC thresholds are not meant to apply until 6 July 2022.

A: In the tax year 2022/23, the two separate Primary Thresholds for employees (£190 per week up to 5 July 2022 and £242 per week from 6 July 2022) don’t apply to directors. Instead there is an amalgamated director’s Annual Earnings Period of £11,908, and this applies to any payments made at any point in 2022/23.