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HMRC internal manual

Employment Status Manual

From:
HM Revenue & Customs
Published:
Updated:
, see all updates

  1. Contents
  2. ESM3000
  3. ESM3171

How to work out the deemed payment: Step Eight - step by step guide

The following table provides a step by step framework for working out:

  • the deemed payment; and
  • secondary Class 1 NICs on that payment
Enter in this box the earnings to date (a) 1  
     
Enter in this box the amount at Step Seven (b) 2  
Enter in this box the secondary Class 1 NICs earnings threshold 3  
Enter in this box the secondary Class 1 NICs percentage rate 4  
Deduct the figure in box 1 from the figure in box 3 and enter the result in this box (e) 5  
Deduct the figure in box 5 from the figure in box 2 and enter the result in this box 6  
Multiply the figure in box 6 by 100 and enter the result in this box 7  
Add 100 to the figure in box 4 and enter the result in this box 8  
Divide the figure in box 7 by the figure in box 8 and enter the result in this box 9  
Add the figure in box 9 to the figure in box 5 and enter the result in this box (c) 10  
Deduct the figure in box 10 from the amount at box 2 (d) 11  

  1. this is the amount of earnings paid by the intermediary to the worker during the year, apart from the deemed payment, subject to Class 1 NICs

  2. this is the amount you worked out at Step Seven of the deemed payment calculation

  3. this is the amount of the deemed payment

  4. this is the amount of secondary Class 1 NICs due on the deemed payment

  5. if the result is a negative number, enter zero in this box

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