SolvedNIM01274 | Class 1 structural overview - from April 2009: structural changes: the Class 1 and 2 maximum: examples: three Class 1 employments: fluctuating earnings
From HM Revenue & Customs · National Insurance Manual
Example 3
S Rogers has three separate employments. His total earnings for the 2021 to 2022 tax year are £103,212. He is paid monthly in each job. In each employment he receives fluctuating earnings. His earnings are as follows:
| Earnings | Total | PT to UEL | Over UEL | Total | PT to UEL | Over UEL | Total | PT to UEL | Over UEL |
|---|---|---|---|---|---|---|---|---|---|
| - | Job 1 | - | - | Job 2 | - | - | Job 3 | - | - |
| April 21 | 767 | - | - | 3467 | 2670 | - | - | - | - |
| May 21 | 1017 | 220 | - | 6167 | 3392 | 1978 | - | - | - |
| June 21 | 687 | - | - | 3467 | 2670 | - | - | - | - |
| July 21 | 1617 | 820 | - | 3467 | 2670 | - | - | - | - |
| Aug 21 | 1417 | 620 | - | 6167 | 3392 | 1978 | - | - | - |
| Sept 21 | 817 | 20 | - | 3467 | 2670 | - | 5667 | 3392 | 1478 |
| Oct 21 | 1267 | 470 | - | 3467 | 2670 | - | 2167 | 1370 | - |
| Nov 21 | 1567 | 770 | - | 6167 | 3392 | 1978 | 6367 | 3392 | 2178 |
| Dec 21 | 1967 | 1170 | - | 3467 | 2670 | - | 2667 | 1870 | - |
| Jan 21 | 1767 | 970 | - | 3467 | 2670 | - | 3467 | 2670 | - |
| Feb 21 | 2167 | 1370 | - | 6167 | 3392 | 1978 | 6167 | 3392 | 1978 |
| Mar 21 | 747 | - | - | 3467 | 2670 | - | 8502 | 3392 | 4313 |
| Total | 15804 | 6430 | - | 52404 | 34928 | 7912 | 35004 | 19478 | 9947 |
| Aggregate | £103212 | - | - | - | - | - | - | - | - |
To establish the earnings on which the maximum is based it is necessary to establish the aggregate amount of:
earnings from each job which are between the Primary Threshold and the Upper Earnings Limit and
earnings from each job above the Upper Earnings Limit
| Total aggregate earnings | Aggregate earnings between PT and UEL | Aggregate earnings over UEL |
|---|---|---|
| £103212 | 6430 + 34928 + 19478 = £60836 | nil + 7912 + 9947 = £17859 |
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.
6430 (job 1) + 34928 (job 2) + 19478 (job 3) = 60836
Step 4
Deduct from the total found at step 3 the amount produced by step 1
60836 - 41499 = 19337
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
19337 x 2% = 386.74
Step 6
Add together so much of the person’s earnings from each employment as exceeded the Upper Earnings Limit.
Nil (job 1) +7912 (job 2) + 9947 (job 3) = 17859
Step 7
Multiply the result of step 6 by 2%
17859 x 2% = 357.18
Step 8
Add together the results of steps 2, 5 and 7.
4979.88 + 386.74 + 357.18 = 5723.80
S Rogers’ maximum for the 2021 to 2022 tax year is £5723.80