NIM11009 - Calculating NICs & NIC rebate using exact percentage method: 1997/98: Examples
Example 1 – Not contracted-out NICs
| Earnings | £500.15 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £62.00 | (LEL) | x | 2% | = | £1.24 |
| £403.00 | (UEL – LEL) | x | 10% | = | £40.30 | |
| £41.54 | ||||||
| Employer’s NICs due | £500.15 | x | 10% | = | £50.01 |
| Total NICs due | £41.54 | + | £50.01 | = | £91.55 |
Example 2 – Contracted-out NICs (COMP scheme)
| Earnings | £500.00 | |||||
| Earnings period | Monthly | |||||
| Employee’s NICs due | £269.00 | (LEL) | x | 2% | = | £5.38 |
| £231.00 | (£500 - LEL) | x | 8.4% | = | £19.40 | |
| £24.78 | ||||||
| Employer’s NICs due | £269.00 | (LEL) | x | 5% | = | £13.45 |
| £231.00 | (£500 - LEL) | x | 3.5% | = | £8.08 | |
| £21.53 |
| Total NICs due |
£24.78 | + |
£21.53 | = |
£46.31 |
