Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

Earnings Periods: Payments after the employment has ended: Irregular pattern of payments

Regulations 3(5) & (6) SS(C)R 2001

If there is an irregular pattern of payments after the employment has ended, a weekly earnings period will come into force. For example, NICs on the amounts are calculated on a weekly basis if a former employee, who used to be paid monthly, receives some irregular payments as shown below:

  • a bonus (payment made 11 weeks after the employment has ended); and
  • arrears of pay following a pay award (payment made 7 months after the employment has ended).

If the employment was contracted-out:

  • contracted-out NICs are due on earnings paid up to 6 weeks after the employment has ended.

If the employment was not contracted-out:

  • not contracted-out NICs are due on earnings paid more than 6 weeks after the employment has ended.