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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 6 - not contracted-out earnings of £600 a week

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

Weekly earnings of £600.00 {#IDAZQUYJ} 

£595.00 - £89.00 = £506.00      
         
£600.00 - £595.00 = £5.00      
Employee’s NICs due = £506.00 x 11% = £55.66  
  £5.00 x 1% = £0.05  
  £55.66 +£0.05 = £55.71  
£600.00 - £89.00 = £511.00      
Employer’s NICs due = £511.00 x 12.8% = £65.408, rounded to £65.41  
Total NICs due = £55.71 + £65.41 = £121.12  

Complete P11 as follows -

1a 1b 1c 1d 1e  
           
£77 £12 £506 £121.12 £55.71  
           

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

1a 1b 1c 1d 1e  
           
£4004 £624 £26,312 £6,298.24 £2,896.92