NIM12027 – Class 1: Calculating Class1 NICs for Directors: Annual earnings periods: Examples: Introduction
Regulation 8 SSCR 2001
The examples are to illustrate the principle of applying an
annual earnings period.
NIM12028 – NIM12030 relate to
1999/2000 and
NIM12031 – NIM12034 relate to
2000/2001 tax year.
The 1999/2000 rates and limits used are:
| £66/£3432 |
| £500/£26000 |
| £83/£4335 |
| 10%/12.2% |
The 2000/2001 rates and limits used are:
| Weekly/Annual LEL | £67/£3484 |
| Weekly/Annual UEL | £535/£27820 |
| Weekly/ Annual Primary Threshold | £76/£3952 |
| Weekly/Annual Secondary Threshold | £83/£4385 |
| Primary/Secondary % | 10%/12.2% |
Unless otherwise stated, the director has been in post at the
beginning of the year. For ease of presentation only, the NICs
shown in the examples have been rounded down.
These examples are for tax years prior to 6 4 2003. From 6 4
2003, a new primary liability was introduced on all earnings above
the Upper Earnings Limit. This should be taken into account when
applying the examples to tax years 2003/2004 onwards. Full guidance
on the new primary liability on earnings above the Upper Earnings
Limit is provided at
NIM01100.
