NIM11037 - Calculating & recording Class 1 earnings, NICs & NIC rebates for 2003/04: Completion of forms P11(2003-04) & P14(2003-04): Example 4: Not Contracted-out earnings of £95 a week

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 £95.00

£95.00 - £89.00 = £6.00

Employee's NICs due = £6.00 x 11% = £0.66

Employer's NICs due = £6.00 x 12.8% = £0.768, rounded to £0.77

Total NICs due = £0.66 + £0.77 = £1.43

Complete P11 as follows –

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