In the example below, the weekly limits and thresholds for 2003-2004 have been used. These are:
Employee's NICs due = NIL
Employer's NICs due = NIL
£86.00 - £77.00 = £9.00
Employee’s NIC rebate due = £9.00 x 1.6% = £0.144, rounded to £0.14
Employer’s NIC rebate due = £9.00 x 3.5% = £0.315, rounded to £0.31
Total NIC rebate due = £0.14 + £0.31 = £0.45
Note
As there are no employee’s NICs due to set-off against the employee’s NIC rebate, the full value of the employee’s NIC rebate is available to the employer, in addition to the value of the employer’s own NIC rebate.
Because there are no employer’s NICs due, the effect of setting-off the employee’s and employer’s NIC rebates due is that the total (employee’s and employer’s) NICs payable is a minus amount. The column 1d entry on the P11 is therefore marked ‘R’.
Complete P11 as follows -
| 1a | 1b | 1c | 1d | 1e |
| £77 | £9 | 0 | R £0.45 | £0.00 |
Assuming earnings are the same for 52 weeks, complete P14 as follows –
| 1a | 1b | 1c | 1d | 1e |
| £4004 | £468 | 0 | R £23.40 | £0.00 |
