NIM29024 | Special cases: Class 1 - mariners: DL Earnings Periods - voyage(s) began in one tax year and ended in another - example

Deep Sea Fishing Ltd engaged a mariner to serve on a voyage that began on 14 December 2020 and ended in the following tax year on 15 April 2021.

The Mariner was paid £14,900, which included paid leave to 17 June 2021.

Earnings for the periods of work paid are:

• 14 December 2020 to 5 April 2021: £9,200

• 6 April 2021 to 15 April 2021: £1,600

• 16 April 2021 to 17 June 2021: £4,100

The earnings periods are:

• 14 December 2020 to 5 April 2021 (sixteen weeks): primary and secondary due at 2020 to 2021 rates on £9,200

Primary NICs due is (£9,200 - £2,928(£183 x16)) x 12% = £752.64

Secondary NICs due is (£9,200 - £2,704(£169 x16)) x 13.3% = £863.97

• 6 April 2021 to 17 June 2021 (ten weeks); primary and secondary at 2021 to 2022 rates on £5,700.

Primary NICs due is (£5,700 - £1,840(£184 x10)) x 12% = £463.20

Secondary NICs due is (£5,700 - £1,700(£170 x10)) x 13.3% = £532.00