NIM11049 - Calculating & recording
Class 1 earnings, NICs & NIC rebates for 2003/04: Completion of
forms P11(2003-04) & P14(2003-04): Example 16: Contracted-out
Money Purchase (COMP) Scheme - earnings of £650 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 £650.00
£595.00 - £89.00 = £506.00
| Employee’s NICs due up to | = £506.00 x 9.4% | = £47.564, rounded to |
| UEL | | £47.56 |
£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 up | = £47.56 - £0.19 | = £47.37 |
| to UEL | | |
£650.00 - £595.00 = £55.00
| Employee’s NICs due on | = £55.00 x 1% | = £0.55 |
| earnings above UEL | | |
| Total employee’s NICs
due | = £47.37 + £0.55 | = £47.92 |
| Employer’s NICs due up to | = £506.00 x 11.8% | = £59.708, rounded to |
| UEL | | = £59.71 |
| Employer’s NIC rebate due | = £12.00 x 1% | = £0.12 |
| Net employer’s NICs due up | = £59.71 - £0.12 | = £59.59 |
| to UEL | | |
| Employer’s NICs due on | = £55.00 x 12.8% | = £7.04 |
| earnings above UEL | | |
| Total employer’s NICs due | = £59.59 + £7.04 | = £66.63 |
| Total NICs due | = £47.92 + £66.63 | = £114.55 |
Complete P11 as follows -
| 1a | 1b | 1c | 1d | 1e |
| £77 | £12 | £506 | £114.55 | £47.92 |
Assuming earnings are the same for 52 weeks, complete P14 as
follows –
| 1a | 1b | 1c | 1d | 1e |
| £4004 | £624 | £26,312 | £5,956.60 | £2,491.84 |
employee's NIC rebate in addition to the employer's NIC
rebate due. The entry in
