NIM07072 - Class 1 NICs: Payments made under employment legislation: Re-allocating primary NICs paid on a payment made under a reinstatement order, a re-engagement order, an order for the continuation of a contract of employment or a protective award:

How to apportion the amount of NICs paid between tax years: Adjusting the employee’s NI account

Once you have calculated, as per NIM07071, the amounts of:

• earnings; and
• primary NICs

to be re-allocated, you will need to amend the relevant postings on the employee’s NI account on NIRS2. Do this:

• in accordance with current guidance and procedures; and
• by making the necessary adjustments as “employee only”.

So, using the figures in the example at NIM07071, you would:

• for the 2021/22 tax year, increase the amounts of earnings and primary NICs by £1395.00 and £77.28 respectively; and
• for the 2022/23 tax year, reduce the amounts of earnings and primary NICs by the same amounts.