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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: 2000/2001, completion of form P11, examples- contracted-out salary related (COSR) scheme

In the examples below, the weekly limits and thresholds have been used. These are:

Lower Earnings Limit £67.00
   
Employee’s Earnings Threshold £76.00
Employer’s Earnings Threshold £84.00
Upper Earnings Limit £535.00
   
Weekly earnings of £74.00        
         
         
Employee NICs due = NIL        
         
Employer NICs due = NIL        
         
NIC rebate = £0.11 (£74.00 - £67.00 = £7.00 x 1.6%)
= £0.21 (£74.00 - £67.00 = £7.00 x 3%)  
   
   
Total NIC rebate due = £0.32        
         
         
               
               
P11              
Col 1a Col 1b Col 1c Col 1d Col 1e Col 1f Col 1g Col 1h
£67 £7         £0.11 £0.21
               
Weekly earnings of £100.00        
         
         
Employee NICs due = £2.02 (£100.00 - £76.00 = £24.00 x 8.4%)
 
Employer NICs due = £1.47 (£100.00 - £84.00 = £16.00 x 9.2%)
 
NIC Rebate = £0.14 (£76.00 - £67.00 = £9.00 x 1.6%)
 
NIC Rebate = £0.51 (£84.00 - £67.00 = £17.00 x 3%)
 
Total NICs due = £3.49
 
Total NIC rebate due = £0.65
 
               
               
P11              
Col 1a Col 1b Col 1c Col 1d Col 1e Col 1f Col 1g Col 1h
£67 £9 £8 £16 £3.49 £2.02 £0.14 £0.51