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.