NIM12027 - Class 1: Calculating Class 1 NICs for Directors: Annual earnings period: Examples
Regulation 8 Social Security (Contributions) Regulations 2001
The examples are to illustrate the principle of applying an annual earnings period. NIM12028 – NIM12031 relate to 2025 to 2026 and do not include any employments that attract an employer NICs relief
The 2025 to 2026 rates and limits used are:
| Rates and Limits | Weekly Amount |
Annual Amount |
|---|---|---|
Lower Earnings Limit (LEL) |
£125 | £6,500 |
Upper Earnings Limit (UEL) |
£967 | £50,270 |
Secondary Threshold (ST) |
£96 | £5,000 |
Primary Threshold (PT) |
£242 | £12,570 |
Primary Main Rate |
8% |
|
| Additional Rate | 2% |
|
Secondary Rate |
15% |
Unless otherwise stated, the director has been in post at the beginning of the year.