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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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HM Revenue & Customs
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Notices of decision: Wording of National Insurance contributions liability decisions: Calculating unpaid Class 1 National Insurance contributions due on earnings below the upper earnings limit

DANSP31100 provides some general information which applies to Class 1 National Insurance contributions (NIC) liability decisions where the NIC due is more than the NIC paid. In some cases Class 1 NIC will be due on earnings below the upper earnings limit (UEL) and the only way you will be able to calculate the NIC due is by

  • establishing in each of the earnings periods covered by the decision what earnings were paid, and
  • for each earnings period covered by the decision, calculate the NIC due, and
  • aggregate the NIC due for every earnings period covered by the decision.

Where a person was a director from at least tax week one in the tax year in question, all you need to know is the total earnings in the tax year to calculate the NIC due as an annual earnings period will apply.

If you are unable to establish information required to calculate the NIC due see DANSP31300 about estimating the NIC due.