NIM11034 - Calculating & recording Class 1 earnings, NICs & NIC rebates for 2003/04: Completion of forms P11(2003-04) & P14(2003-04): Example 1: Not Contracted-out earnings of £77 a week

In all the examples that follow from NIM11034 to NIM11048, NICs and, where appropriate, NIC rebates, have been worked out using the exact percentage method – see NIM11002.

In the example below, the weekly limits and thresholds for 2003-2004 have been used. These are:

• Lower Earnings Limit (LEL): £77.00
• Earnings (ET): £89.00
• Upper Earnings Limit (UEL): £595.00

Weekly earnings of £77.00

Employee's NICs due = NIL

Employer's NICs due = NIL

Complete P11 as follows –

Assuming earnings are the same for 52 weeks, complete P14 as follows –