NIM11018 - Calculating & recording Class 1 earnings, NICs & NIC rebates: 2000/2001: Completion of form P11: Examples: Contracted-Out Salary Related (COSR) scheme

In the examples below, the weekly limits and thresholds have been used. These are:

Lower Earnings Limit£67.00
Employee's Earnings Threshold£76.00
Employer's Earnings Threshold£84.00
Upper Earnings Limit£535.00
Weekly earnings of £74.00


Employee NICs due = NIL
Employer NICs due = NIL


NIC rebate=£0.11 (£74.00 - £67.00 = £7.00 x 1.6%)

=£0.21 (£74.00 - £67.00 = £7.00 x 3%)


Total NIC rebate due = £0.32


P11
Col 1aCol 1bCol 1cCol 1dCol 1eCol 1fCol 1gCol 1h
£67£70000£0.11£0.21


Weekly earnings of £100.00


Employee NICs due = £2.02 (£100.00 - £76.00 = £24.00 x 8.4%)
Employer NICs due = £1.47 (£100.00 - £84.00 = £16.00 x 9.2%)


NIC Rebate = £0.14 (£76.00 - £67.00 = £9.00 x 1.6%)
NIC Rebate = £0.51 (£84.00 - £67.00 = £17.00 x 3%)


Total NICs due = £3.49
Total NIC rebate due = £0.65


P11
Col 1aCol 1bCol 1cCol 1dCol 1eCol 1fCol 1gCol 1h
£67£9£8£16£3.49£2.02£0.14£0.51