NIM11024 – Calculating & recording Class 1 earnings, NICs & NIC rebates for 2001/02: Completion of form P11: Examples: Not Contracted-out employment
In the examples below, the weekly limits and thresholds for 2001-2002 have been used for illustrative purposes. These are:
- Lower Earnings Limit (LEL): £72.00
- Primary Threshold (PT) & Secondary Threshold (ST) – the ‘ET’: £87.00
- Upper Earnings Limit (UEL): £575.00
Weekly earnings of £72.00
Employee's NICs due = NIL
Employer's NICs due = NIL
Complete P11 as follows –
| 1a | 1b | 1c | 1d | 1e | 1f | 1g |
| £72 | 0 | 0 | 0 | 0 | 0 | 0 |
Weekly earnings of £80.00
Employee's NICs due = NIL
Employer's NICs due = NIL
Complete P11 as follows -
| 1a | 1b | 1c | 1d | 1e | 1f | 1g |
| £72 | £8 | 0 | 0 | 0 | 0 | 0 |
Weekly earnings of £87.00
Employee's NICs due = NIL
Employer's NICs due = NIL
Complete P11 as follows –
| 1a | 1b | 1c | 1d | 1e | 1f | 1g |
| £72 | £15 | 0 | 0 | 0 | 0 | 0 |
Weekly earnings of £89.00
£89.00 - £87.00 = £2.00
Employee's NICs due = £2.00 x 10% = £0.20
Employer's NICs due = £2.00 x 11.9% = £0.24
Total NICs due = £0.44
Complete P11 as follows –
| 1a | 1b | 1c | 1d | 1e | 1f | 1g |
| £72 | £15 | £2 | £0.44 | £0.20 | 0 | 0 |
Weekly earnings of £100.00
£100.00 - £87.00 = £13.00
Employee's NICs due = £13.00 x 10% = £1.30
Employer's NICs due = £13.00 x 11.9% = £1.55
Total NICs due = £1.30 + £1.55 = £2.85
Complete P11 as follows –
| 1a | 1b | 1c | 1d | 1e | 1f | 1g |
| £72 | £15 | £13 | £2.85 | £1.30 | 0 | 0 |
