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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: for 2003/04 completion of form P11 (2003-04) - national insurance contributions details

The figure inserted here, in £s and pence, is the combined total of primary (employee’s) and secondary (employer’s) NICs payable.

Where earnings exceed the UEL, employee’s and employer’s NICs paid on those earnings above the UEL should be included with this figure.

Where the employment is contracted-out, there may be occasions where the amount entered in column 1d, after deducting the NIC rebates, will be a minus figure. This will occur where earnings just exceed the ET (around £93 per week for COSR schemes and £90 per week for COMP schemes). The examples at NIM11041, NIM11042, NIM11046 and NIM11047 illustrate this point.

Column 1e: Employee’s contributions payable on earnings in 1c (after deducting employee’s NIC rebate, where appropriate)

The figure inserted here, in £s and pence, is the employee’s NICs included in column 1d.

Where earnings exceed the UEL, employee’s NICs paid on those earnings above the UEL should be included with this figure.

Where employment is contracted-out, there may be occasions where the amount entered in column 1e will be reduced to zero. This will occur where earnings are at or below the ET, and the effect of deducting the employee’s NIC rebate due is that the net employee’s NICs payable are reduced to either zero or a minus figure. The examples at NIM11041, NIM11042, NIM11046 & NIM11047 illustrate this point.

The employee is only entitled to the amount of employee’s NIC rebate, which equates to the employee’s NICs payable. Any balance becomes available to the employer.