NIM12027 - Class 1: Calculating Class 1 NICs for Directors: Annual earnings period: Examples
Regulation 8 Social Security (Contributions) Regulations 2001
The examples are to illustrate the principle of applying an annual earnings period. NIM12028 – NIM12031 relate to 2021 to 2022 and do not include any employments that attract an employer NICs relief
The 2021 to 2022 rates and limits used are:
| Rate / Limit | Amount |
|---|---|
| Weekly/Annual LEL | £120/£6,358 |
| Weekly/Annual UEL | £533/£50,270 |
| Weekly/Annual Secondary Threshold (‘ST’) | £170/£8,840 |
| Weekly/Annual Primary Threshold (‘PT’) | £184/£9,568 |
| Primary Main Rate/Additional Rate % | 12%/2% |
| Secondary % | 13.8% |
Unless otherwise stated, the director has been in post at the beginning of the year.