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HMRC internal manual

# Class 1: calculating & recording earnings, NICs & NIC rebates: rates, limits, thresholds, rebates and P11 completion: 1999/ 00 examples using exact percentage method

## Example 1 - Not contracted-out NICs

 Earnings £80.00 Earnings period Weekly Employee’s NICs due £14.00 (£80 - LEL) x 10% = £1.40
 Employer’s NICs due = £NIL

## Example 2 - Not contracted-out NICs

 Earnings £100.00 Earnings period Weekly Employee’s NICs due £34.00 (£100 - LEL) x 10% = £3.40 Employer’s NICs due £17.00 (£100 - ET) x 12.2% = £2.07

## Example 3 - Contracted-out NICs (COMP scheme)

 Earnings £80.00 Earnings period Weekly Employee’s NICs due £14.00 (£80 - LEL) x 8.4% = £1.18 Employer’s NICs due = £NIL Employer’s NIC rebate due £14.00 (£80 - LEL) x 0.6% = £0.08

## Example 4 - Contracted-out NICs (COSR scheme)

 Earnings £100.00 Earnings period Weekly Employee’s NICs due £34.00 (£100 - LEL) x 8.4% = £2.86 Employer’s NICs due £17.00 (£100 - ET) x 9.2% = £1.56 Employer’s NIC rebate due £17.00 (ET - LEL) x 3.0% = £0.51

## Example 5 - Contracted-out NICs (COMP scheme)

 Earnings £3000.00 Earnings period Monthly Employee’s NICs due £1881.00 (UEL - LEL) x 8.4% = £158.00 Employer’s NICs due £1806.00 (UEL - ET) x 11.6% = £209.50 £833.00 (£3000 - UEL) x 12.2% = £101.63 £311.13 Employer’s NIC rebate due £75.00 (ET - LEL) x 0.6% = £0.45