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HMRC internal manual

National Insurance Manual

Earnings Periods: Payments not paid on their usual payday: Usual payday & date of payment in different tax years

Regulation 7(1)(a) & (3), SS(C)R 2001

If the usual payday and the date of payment are in different tax years, the employer:

  • works out the NICs due on both payments using the NIC rates current at the time of payment; and
  • must not add the payment to any other earnings due in the tax year of actual payment.


An employee is due to be paid their weekly wages on 4 April 2001 but due to a computerbreakdown, receives the payment along with the wages on 11 April 2001. NICs must be workedout separately on the wages due on 4 April and 11 April. For the payment due on 4 April,because payment was actually made on 11 April, NICs must be worked out using the 2001/02contribution rates and limits.


Although liability for NICs in respect of these payments must be assessed in thismanner, the contributions in question may be re-allocated for benefit purposes – see NIM09800