NIM12028 - Class 1: Calculating Class 1 NICs for Directors: Annual earnings periods: Examples: Regular monthly salary 鈥� 2025 to 2026
Regulation 8 Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)
Director paid 拢3,000 on 28th of each month starting April 2025 and pays NICs using the directors Standard Method of calculation.听Cumulative NICs are shown but amount actually payable each month is difference between amount due and amount previously paid. 听
| Date | Cumulative | Primary | Secondary | Notes |
|---|---|---|---|---|
| 28 April | 拢3000 | Nil | Nil | Below Secondary Threshold听 |
| 28 May | 拢6000 | Nil | 拢150.00 ((拢6,000 - 拢5,000) x 15%)听 |
Employer's NICs calculated from earnings year to date Below LEL听 |
| 28 June | 拢9000 | Nil | 拢450.00 ((拢9,000 - 拢5,000) x 15% = 拢600.00 - 拢150.00) |
Employer's NICs calculated from earnings year to date and subtract previous months NICs听 No Primary as still below PT |
28 July听 |
拢12,000听 |
Nil |
拢450.00 ((拢12,000 - 拢5,000) x15% = 拢1050.00 - 拢600.00)听 |
No Primary as still below PT |
28 August听 |
拢15,000听 |
拢194.40 听((拢15,000 - 拢12,570) x 8% = 拢194.40)听 |
拢450.00 ((拢15,000 - 拢5,000) x15% = 拢1,500 - 拢1050)听 |
Director's NICs calculated from earnings year to date听 |
28 September听 |
拢18,000 |
听 拢240.00 听((拢18,000 - 拢12,570) x 8% = 拢434.40 - 拢194.40)听 |
拢450.00 ((拢18,000 - 拢5,000) x15% = 拢1,9500 - 拢1,500)听 | Director's NICs calculated from earnings year to date and subtract previous months NICs听 听 |
| October to February | Repeat as for September | |||
28 March |
拢36,000 |
拢240.00 ((拢36,000 - 拢12,570) x 8% = 拢1,874.40 - 拢1,634.40)听 |
拢450.00听 ((拢36,000 - 拢5,000) x 15% = 拢4,650 - 拢4,200)听 |
Earnings for year do not reach the UEL |
If the employer decides to 鈥榩ay on account鈥� (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.