NIM11048 - Calculating & recording Class 1
earnings, NICs & NIC rebates for 2003/04: Completion of forms
P11(2003-04) & P14(2003-04): Example 15: Contracted-out Money
Purchase (COMP) Scheme - 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 9.4% | = £1.034, rounded to |
| | £1.03 |
£89.00 - £77.00 = £12.00
| Employee’s NIC rebate due | = £12.00 x 1.6% | = £0.192, rounded to |
| | £0.19 |
| Net employee’s NICs due | = £1.03 - £0.19 | = £0.84 |
| Employer’s NICs due | = £11.00 x 11.8% | = £1.298, rounded to £1.30 |
| Employer’s NIC rebate due | = £12.00 x 1% | = £0.12 |
| Net employer’s NICs due | = £1.30 - £0.12 | = £1.18 |
| Total NICs due | = £0.84 + £1.18 | = £2.02 |
Complete P11 as follows -
| 1a | 1b | 1c | 1d | 1e |
| £77 | £12 | £11 | £2.02 | £0.84 |
Assuming earnings are the same for 52 weeks, complete P14 as
follows –
| 1a | 1b | 1c | 1d | 1e |
| £4004 | £624 | £572 | £105.04 | £43.68 |
