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ESM8235 - BASIC PRINCIPLES: HOW TO WORK OUT THE DEEMED PAYMENT: STEP EIGHT - EXAMPLE USING STEP BY STEP GUIDE Ms G is a worker whose service company has earned income from a relevant

engagement. The service company paid her a salary of £3,000 during the year. The amount at Step Seven is £30,000. This produces the following figures: - AMOUNT Earnings to date £3,000 The

amount at Step Seven £30,000 The secondary Class 1 NICs threshold £5,000 The secondary Class 1 NICs percentage rate 0.15% Using the template at ESM8230 the calculation is as follows: WHAT TO

DO BOX NUMBER  AMOUNT Enter in this box the earnings to date 1 3000 Enter in this box the amount at Step Seven 2 30000 Enter in this box the secondary Class 1 NICs earnings threshold 3 5000

Enter in this box the secondary Class 1 NICs percentage rate 4 0.15% Deduct the figure in box 1 from the figure in box 3 and enter the result in this box 5 2000 Deduct the figure in box 5

from the figure in box 2 and enter the result in this box 6 28000 Multiply the figure in box 6 by 100 and enter the result in this box 7 2800000 Add 100 to the figure in box 4 and enter the

result in this box 8 115 Divide the figure in box 7 by the figure in box 8 and enter the result in this box 9 24348 Add the figure in box 9 to the figure in box 5 and enter the result in

this box (a) 10 26348 Deduct the figure in box 10 from the amount at box 2 (b) 11 3652 (a) this is the amount of the deemed payment - £26,348 (b) this is the amount of secondary Class 1 NICs

due on the deemed payment - £3,652 NOTE - 2025-26 NICs rates used in example calculation. Previous page Next page Print this page