NIM11007 - Calculating NICs & NIC rebate using exact percentage method: 1996/97: Examples
Example 1 – Not contracted-out NICs
| Earnings | £115.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £61.00 | (LEL) | x | 2% | = | £1.22 |
| £54.00 | (£115 – LEL) | x | 10% | = | £5.40 | |
| £6.62 | ||||||
| Employer’s NICs due | £115.00 | x | 5% | = | £5.75 |
| Total NICs due | £6.62 | + | £5.75 | = | £12.37 |
Example 2 – Contracted-out NICs
| Earnings | £1251.75 | |||||
| Earnings period | Monthly | |||||
| Employee’s NICs due | £265.00 | (LEL) | x | 2% | = | £5.30 |
| £986.75 | (£1251.75 – LEL) | x | 8.2% | = | £80.91 | |
| £86.21 | ||||||
| Employer’s NICs due | £265.00 | (LEL) | x | 10.2% | = | £27.03 |
| £986.75 | (£1251.75 – LEL) | x | 7.2% | = | £71.05 | |
|
£98.08 |
| Total NICs due |
£86.21 | + |
£98.08 | = |
£184.29 |
