Sorry to ask but I'm feeling abit thick here because I know the answer is staring me in the face and I just can't see it.
I've been working on a manual past paper for payroll and everything is fine until I have to work out the NIC's for gross weekly/monthly pay exceeding the UEL. I've followed the instructions on the CA38 nic's form and I understand what you have to do; my weekly one matches the past paper answer but my monthly one doesn't; however looking at the example given on the HMRC form I just don't see where they have got one of the figures from.
I can see where they've got the figures for the earnings above UEL using the 'additional gross pay table' but I understood that for the figures for the earnings up to UEL you use the main table columns 'd' & 'e' (2005/06); however looking at these 2 columns the figures are nothing like the figures then used in the example.
I have the Mock paper for the Diploma in Payroll Management (2005/6) in front of me. I assume you are working on the same paper (company Fix 'n' Finish). If so, can you be more specific (which figures and which months for which employee you are unsure about). There are 2 directors/employees who earned more than £630 a week (the NIC UEL): John Higson and Lucy Judd. Is it the P11 form for John Higson you are querying about?
Thank you for taking the time to help me with this; yes it is John Higson I am querying.
I followed the HMRC example to how I thought it should be worked out and for Lucy Judd it matched the past paper but doing the same for John Higson didn't.
In the HMRC example they have:
Part 4: £262.20 & £19.00 (I understand how that came about)
Part 5: £552.64 & £255.42 (I don't see where they have got these figures) - I know these are supposed to come from columns d & e of the main table but following what I did for Lucy Judd I just don't see it.
The figures of £552.64 and £255.42 relate to the NICs payable at the UEL (i.e. at £2730 a month) so the £262.20 and £19 NICs are the additional sums payable for John Higson's earnings above the UEL.
Thanks for answering; my query is that if you check across to column d & e at £2730 (which is what I did); the figures on the main table are:
£320.44 & £23.22 not£552.64 & £255.42??
So how has £552.64 & £255.42 come about??
This is why I can't understand it. I picked up Column d & e for Lucy Judd's nic's at the UEL + the additional amount and the figures matched the past paper answer; but for John Higson I'm out by over £200+.
