NIM01274 - Class 1 structural overview - from April 2009: structural changes: the Class 1 and 2 maximum: examples: three Class 1 employments: fluctuating earnings
Example 3
S Rogers has three separate employments. His total earnings for the 2021 to 2022 tax year are £103,212. He is paid monthly in each job. In each employment he receives fluctuating earnings. His earnings are as follows:
Earnings |
Total |
PT to UEL |
Over UEL |
Total |
PT to UEL |
Over UEL |
Total |
PT to UEL |
Over UEL |
|---|---|---|---|---|---|---|---|---|---|
| - | Job 1 | - | - | Job 2 | - | - | Job 3 | - | - |
April 21 |
767 |
- |
- |
3467 |
2670 |
- |
- |
- |
- |
May 21 |
1017 |
220 |
- |
6167 |
3392 |
1978 |
- |
- |
- |
June 21 |
687 |
- |
- |
3467 |
2670 |
- |
- |
- |
- |
July 21 |
1617 |
820 |
- |
3467 |
2670 |
- |
- |
- |
- |
Aug 21 |
1417 |
620 |
- |
6167 |
3392 |
1978 |
- |
- |
- |
Sept 21 |
817 |
20 |
- |
3467 |
2670 |
- |
5667 |
3392 |
1478 |
Oct 21 |
1267 |
470 |
- |
3467 |
2670 |
- |
2167 |
1370 |
- |
Nov 21 |
1567 |
770 |
- |
6167 |
3392 |
1978 |
6367 |
3392 |
2178 |
Dec 21 |
1967 |
1170 |
- |
3467 |
2670 |
- |
2667 |
1870 |
- |
Jan 21 |
1767 |
970 |
- |
3467 |
2670 |
- |
3467 |
2670 |
- |
Feb 21 |
2167 |
1370 |
- |
6167 |
3392 |
1978 |
6167 |
3392 |
1978 |
Mar 21 |
747 |
- |
- |
3467 |
2670 |
- |
8502 |
3392 |
4313 |
Total |
15804 |
6430 |
- |
52404 |
34928 |
7912 |
35004 |
19478 |
9947 |
Aggregate |
£103212 |
- |
- |
- |
- |
- |
- |
- |
- |
To establish the earnings on which the maximum is based it is necessary to establish the aggregate amount of:
- earnings from each job which are between the Primary Threshold and the Upper Earnings Limit and
- earnings from each job above the Upper Earnings Limit
Total aggregate earnings |
Aggregate earnings between PT and UEL |
Aggregate earnings over UEL |
|---|---|---|
£103212 |
6430 + 34928 + 19478 = £60836 |
nil + 7912 + 9947 = £17859 |
Step 1
Deduct the relevant Primary threshold from the relevant UEL and multiply that figure by 53.
967 - 184 = 783 x 53 = 41,499
Step 2
Multiply the result of step 1 by 12%
41,499 x 12% = 4,979.88
Step 3
Add together so much of the person’s earnings from each employed earner’s employment as
exceeded the Primary Threshold but did not exceed the Upper Earnings Limit.
6430 (job 1) + 34928 (job 2) + 19478 (job 3) = 60836
Step 4
Deduct from the total found at step 3 the amount produced by step 1
60836 - 41499 = 19337
Step 5
If the figure produced at step 4 is a positive figure multiply that figure by 2%
If the figure produced at step 4 is a negative figure, it is treated for the purposes of step 8 as nil
19337 x 2% = 386.74
Step 6
Add together so much of the person’s earnings from each employment as exceeded the Upper Earnings Limit.
Nil (job 1) +7912 (job 2) + 9947 (job 3) = 17859
Step 7
Multiply the result of step 6 by 2%
17859 x 2% = 357.18
Step 8
Add together the results of steps 2, 5 and 7.
4979.88 + 386.74 + 357.18 = 5723.80
S Rogers’ maximum for the 2021 to 2022 tax year is £5723.80