Director paid £3000 on 28th of each month starting April 1999. Cumulative NICs are shown but amount actually payable each month is difference between amount due and amount previously paid. The NICs amounts are also rounded down for ease of presentation.
| Date | Cumulative | Primary | Secondary | Notes |
| 28 April | £3000 | Nil | Nil | Below LEL and Thresholds |
| 28 May | £6000 | £256 (6000 - 3432 @ 10%) | £203 (6000 - 4355 @ 12.2%) | Earnings exceed both LEL and EET |
| 28 June | £9000 | £556 | £569 |
|
| July to November | £12000 - £24000 | Calculations as before | Calculations as before | Calculations as before |
| 28 December | £27000 | £2256 (26000 – 3432 @ 10%) | £2765 (27000 – 4335 @ 12.2%) | Primary NICs restricted
to earnings up to UEL*
No restriction on secondary |
| January/ February | £33000 | £2256 | Calculation as before |
|
| 28 March | £36000 | £2256 | £3863 (36000 – 4335 @ 12.2%) |
|
If the employer decides to ‘pay on account’ (
NIM12026) Class 1 NICs are due from the
first month and the employer adjusts the final payment at the end
of the year to ensure the same amount of NICs is paid as in the
example.
* The above example is for a tax year 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 example to tax years 2003/2004 onwards. Full
guidance on the new primary liability on earnings above the Upper
Earnings Limit is provided at
NIM01100.
