NIM11038 - Calculating & recording Class 1 earnings, NICs & NIC rebates for 2003/04: Completion of forms P11(2003-04) & P14(2003-04): Example 5: Not Contracted-out earnings of £100 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 £100.00

£100.00 - £89.00 = £11.00

Employee's NICs due = £11.00 x 11% = £1.21

Employer's NICs due = £11.00 x 12.8% = £1.408, rounded to £1.41

Total NICs due = £1.21 + £1.41 = £2.62

Complete P11 as follows –

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