NIM11011 - Calculating Class 1 NICs & NIC rebate using exact percentage method: 1998/99: Examples
Example 1 – Not contracted-out NICs
| Earnings | £775.00 | |||||
| Earnings period | Monthly | |||||
| Employee’s NICs due | £278.00 | (LEL) | x | 2% | = | £5.56 |
| £497.00 | (£775 - LEL) | x | 10% | = | £49.70 | |
| £55.26 | ||||||
| Employer’s NICs due | £775.00 | x | 7% | = | £54.25 |
| Total NICs due |
£55.26 | + |
£54.25 | = |
£109.51 |
Example 2 – Contracted-out NICs (COSR scheme)
| Earnings | £1100.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £64.00 | (LEL) | x | 2% | = | £1.28 |
| £421.00 | (UEL - LEL) | x | 8.4% | = | £35.36 | |
| £36.64 | ||||||
| Employer’s NICs due | £64.00 | (LEL) | x | 10% | = | £6.40 |
| £421.00 | (UEL - LEL) | x | 7% | = | £29.47 | |
| £615.00 | (£1100 - UEL) | x | 10% | = | £61.50 | |
| £97.37 |
| Total NICs due |
£36.64 | + |
£97.37 | = |
£134.01 |
