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. NIM12028NIM12031 relate to 2021 to 2022 and do not include any employments that attract an employer NICs relief

The 2021 to 2022 rates and limits used are:

Rate / Limit Amount
Weekly/Annual LEL £120/£6,358
Weekly/Annual UEL £533/£50,270
Weekly/Annual Secondary Threshold (‘ST’) £170/£8,840
Weekly/Annual Primary Threshold (‘PT’) £184/£9,568
Primary Main Rate/Additional Rate % 12%/2%
Secondary % 13.8%

Unless otherwise stated, the director has been in post at the beginning of the year.