A new improved Least Trimmed Squares (LTS) based algorithm for Non-line-of-sight (NLOS) error mitigation is proposed for indoor localisation systems. The conventional LTS algorithm has hard threshold to decide the final set of base stations (BSs) to be used in position calculations. When the number of Line of Sight (LOS) BSs is more than the number of NLOS BSs the conventional LTS algorithm does not include some of them in position estimation due to principle of LTS algorithm or under heavy NLOS environments it cannot separate least biased BSs to use. To improve the performance of the conventional LTS algorithm in dynamic environments we have proposed a method that selects BSs for position calculation based on ordered residuals without discarding half of the BSs. By choosing a set of BSs which have least residual errors among all combinations as a final set for position calculation, we were able to decrease the localisation error of the system in dynamic environments. We demonstrate the robustness of the new improved method based on computer simulations under realistic channel environments.