NIM12029 - Class1: Calculating Class1 NICs for Directors: Annual earnings periods: Examples: Fees voted
Regulation 8 Social Security (Contributions) Regulations 2001
Company accounts year-end is 30 June 2025. Director does not receive salary but is voted 拢56,000 fees at AGM held on 20 September 2025.
| Date | 听颁耻尘耻濒补迟颈惫别 | Primary | Secondary | Notes |
|---|---|---|---|---|
| April to August聽 | Nil | Nil | Nil | No earnings paid |
| 20 September聽 | 拢56,000 | 拢3,130.60 (拢50,270 鈥� 拢12,570 x 8% =拢3016) + (拢56,000 - 拢50,270 x 2% =拢114.60)聽 | 拢7,650.00 (拢56,000 鈥� 拢5,000 x 15%)聽 | Earnings Between PT and UEL at main primary percentage and as total earnings above UEL balance due at the additional primary percentage 聽 |
| October to March聽 | 拢56,000听 | 拢3,130.60 | 拢7,650.00 | No further earnings聽 |
The question to ask in this example is 鈥淗ow does director pay for his or her living expenses in period before earnings voted?鈥� The fees voted and paid in the previous year might have been withdrawn at regular intervals from the personal bank account. There might be another source of income and/or there could be drawings from a loan account with the company. If the loan account is used, there could be payments in advance of earnings within regulation 22 SSCR 2001, see鈥�NIM12014. If it is not apparent how the director can fund his or her lifestyle before the voting of remuneration, you should consider this further.聽