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 employees 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 employeesNI 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 2000/01 tax year, increase the amounts of earnings and primary NICs by £697.67 and £32.48 respectively; and
- for the 2001/02 tax year, reduce the amounts of earnings and primary NICs by the same amounts.