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HMRC internal manual

# Class 1 structural overview - from April 2009: structural changes: the Class 1 and 2 maximum: example: four Class 1 employments: maximum not reached

## Example 6

P Parker has four part-time jobs. In each she earns £180 per week. Her maximum Class 1 NICs liability is calculated as follows:

Step 1

Deduct the relevant Primary threshold from the relevant UEL and multiply that figure by 53.

817 - 139 = 678 x 53 = 35934

Step 2

Multiply the result of step 1 by 12%

35934 x 12% = 4312.08

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.

180 (weekly earnings) - 139 (weekly PT) = 41 x 208 (weeks) = 8528

Step 4

Deduct from the total found at step 3 the amount produced by step 1

8528 - 35934 = minus 27406

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

Nil

Step 6

Add together so much of the person’s earnings from each employment as exceeded the Upper Earnings Limit.

There are no earnings above the UEL

Step 7

Multiply the result of step 6 by 2%

Not applicable

Step 8

Add together the results of steps 2, 5 and 7.

4312.08 + nil + nil

P Parker’s maximum for the 2011/2012 tax year is £4312.08.

The amount of primary Class 1 NICs the employee will pay in each employment on earnings of £180 will not reach the prescribed maximum but Mrs Jones will have met her full Class 1 liability.