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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: settlement: steps to follow where the employee is not a director of the company

NPS Process - Employee

Use the name, NINO and additional pay details to calculate the NICs due.

  • Access NIRS by selecting the NIRS Person icon.
  • Enter the NINO and confirm that the correct NPS account has been accessed.
  • Select the blue ‘Contributions’ tab. This will bring up a list of the last six contribution years.
  • Select, by double clicking, the relevant entry for the relevant year (make sure you don’t double click the ‘totals’ line). This will bring up the P14.
  • Take a note of the Total NI paid and the employee (primary) NI paid details.
  • Select ‘Options’ on the toolbar then click on ‘View Class 1 Employment History’. Confirm that you have the correct employer from the employer details shown on the screen. From this screen note only the gross pay details of the current employment for the employer concerned. This needs to be added to the additional gross pay provided by the caseworker.
  • Select ‘Tools’ and then ‘Calculation Support’. Select the calculation type, in this case, Class 1 NI Assessment, and select ‘OK’.
  • Enter name, NINO and reference.
  • Select ‘Tax Year’ from the dropdown menu (use the beginning of the tax year, for example, 2010-2011, select 2010).
  • Enter total NI paid, employee NI paid.
  • Using the tab key:

    • period - choose pay frequency
    • enter week/month number
    • enter category letter (as shown on P14)
    • table - enter Y/N Enter the weekly/monthly gross pay figure (if the figure is the same for each consecutive period, click on the repeat button for the required number of weeks/months). For those weeks/months where extra earnings have not been identified, these figures will be the same as those shown in the employer’s wage records.
  • Select [Calculate].
  • Select [Print].

Note: If the employee has earnings from other employments in the tax year, any calculation will need to take account of that year’s UEL in order to prevent an overpayment of NICs.