NIM01277 - Class 1 structural overview - from April 2009: structural changes: the Class 1 and 2 maximum: example: four Class 1 employments: maximum not reached
Example 6
P Parker has four part-time jobs. In each they earn £200 per week. Their maximum Class 1 NICs liability for the 2021 to 2022 tax year is calculated as follows:
Step 1
Deduct the relevant Primary threshold from the relevant UEL and multiply that figure by 53.
967 - 184 = 783 x 53 = 41,499
Step 2
Multiply the result of step 1 by 12%
41,499 x 12% = 4,979.88
Step 3
Add together so much of the person’s earnings from each employed earner’s employment as exceeded the Primary Threshold but did not exceed the Upper Earnings Limit.
200 (weekly earnings) - 184 (weekly PT) = 16 x 208 (weeks) = 3,328
Step 4
Deduct from the total found at step 3 the amount produced by step 1
3,328- 41,499 = minus 38,171
Step 5
If the figure produced at step 4 is a positive figure multiply that figure by 2%.
If the figure produced at step 4 is a negative figure, it is treated for the purposes of step 8 as nil
Nil
Step 6
Add together so much of the person’s earnings from each employment as exceeded the Upper Earnings Limit.
There are no earnings above the UEL
Step 7
Multiply the result of step 6 by 2%
Not applicable
Step 8
Add together the results of steps 2, 5 and 7.
4979.88 + nil + nil
P Parker’s maximum for the 2021 to 2022 tax year is £4979.88.
The amount of primary Class 1 NICs the employee will pay in each employment on earnings of £200 will not reach the prescribed maximum but they will have met their full Class 1 liability.