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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: 2003/04, completion of forms P11 (2003-04) & P14 (2003-04) example 5 - not contracted-out earnings of £100 a week

  • Lower Earnings Limit (LEL): £77.00
  • Earnings (ET): £89.00
  • Upper Earnings Limit (UEL): £595.00

Weekly earnings of £100.00

£100.00 - £89.00 = £11.00      
         
Employee’s NICs due = £11.00 x 11% = £1.21  
Employer’s NICs due = £11.00 x 12.8% = £1.408, rounded to £1.41  
Total NICs due = £1.21 + £1.41 = £2.62  

Complete P11 as follows -

1a 1b 1c 1d 1e  
           
£77 £12 £11 £2.62 £1.21  
           

Assuming earnings are the same for 52 weeks, complete P14 as follows -

1a 1b 1c 1d 1e  
           
£4004 £624 £572 £136.24 £62.92