NIM11013 - Calculating Class 1 NICs & NIC rebate using exact percentage method: 1999/00: Examples
Example 1 – Not contracted-out NICs
| Earnings | £80.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £14.00 | (£80 - LEL) | x | 10% | = | £1.40 |
| Employer’s NICs due | = | £NIL |
Example 2 – Not contracted-out NICs
| Earnings | £100.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £34.00 | (£100 - LEL) | x | 10% | = | £3.40 |
| Employer’s NICs due | £17.00 | (£100 - ET) | x | 12.2% | = | £2.07 |
Example 3 – Contracted-out NICs (COMP scheme)
| Earnings | £80.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £14.00 | (£80 – LEL) | x | 8.4% | = | £1.18 |
| Employer’s NICs due | = | £NIL | ||||
| Employer’s NIC rebate due | £14.00 | (£80 – LEL) | x | 0.6% | = | £0.08 |
Example 4 – Contracted-out NICs (COSR scheme)
| Earnings | £100.00 | |||||
| Earnings period | Weekly | |||||
| Employee’s NICs due | £34.00 | (£100 - LEL) | x | 8.4% | = | £2.86 |
| Employer’s NICs due | £17.00 | (£100 - ET) | x | 9.2% | = | £1.56 |
| Employer’s NIC rebate due | £17.00 | (ET - LEL) | x | 3.0% | = | £0.51 |
Example 5 – Contracted-out NICs (COMP scheme)
| Earnings | £3000.00 | |||||
| Earnings period | Monthly | |||||
| Employee’s NICs due | £1881.00 | (UEL - LEL) | x | 8.4% | = | £158.00 |
| Employer’s NICs due | £1806.00 | (UEL – ET) | x | 11.6% | = | £209.50 |
| £833.00 | (£3000 - UEL) | x | 12.2% | = | £101.63 | |
| £311.13 | ||||||
| Employer’s NIC rebate due | £75.00 | (ET - LEL) | x | 0.6% | = | £0.45 |
