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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

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