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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1: calculating & recording earnings, NICs & NIC rebates: rates, limits, thresholds, rebates and P11 completion: 2001/02 completion of form P11, examples - not contracted-out employment

  • Lower Earnings Limit (LEL): £72.00
  • Primary Threshold (PT) & Secondary Threshold (ST) - the ‘ET’: £87.00
  • Upper Earnings Limit (UEL): £575.00

Weekly earnings of £72.00

Employee’s NICs due = NIL

Employer’s NICs due = NIL

Complete P11 as follows -

1a 1b 1c 1d 1e 1f 1g
             
£72            
             

Weekly earnings of £80.00

Employee’s NICs due = NIL

Employer’s NICs due = NIL

Complete P11 as follows -

1a 1b 1c 1d 1e 1f 1g
             
£72 £8          
             

Weekly earnings of £87.00

Employee’s NICs due = NIL

Employer’s NICs due = NIL

Complete P11 as follows -

1a 1b 1c 1d 1e 1f 1g
             
£72 £15          
             

Weekly earnings of £89.00

£89.00 - £87.00 = £2.00  
     
Employee’s NICs due = £2.00 x 10% = £0.20  
Employer’s NICs due = £2.00 x 11.9% = £0.24  
Total NICs due = £0.44  

Complete P11 as follows -

1a 1b 1c 1d 1e 1f 1g
             
£72 £15 £2 £0.44 £0.20    
             

Weekly earnings of £100.00

  £100.00 - £87.00 = £13.00  
       
Employee’s NICs due = £13.00 x 10% = £1.30  
Employer’s NICs due = £13.00 x 11.9% = £1.55  
Total NICs due = £1.30 + £1.55 = £2.85  

Complete P11 as follows -

1a 1b 1c 1d 1e 1f 1g
             
£72 £15 £13 £2.85 £1.30