ESM8235 - BAsic principles: how to work out the deemed payment: step eight - example using step by step guide - HMRC internal manual - GOV.UK
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- UK English Female
- UK English Male
- US English Female
- US English Male
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- Language selected: (auto detect) - EN
Play all audios:
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:
Using the template at ESM8230 the calculation is as follows:
Enter in this box the secondary Class 1 NICs earnings threshold
Enter in this box the secondary Class 1 NICs percentage rate
Deduct the figure in box 1 from the figure in box 3 and enter the result in this box
Deduct the figure in box 5 from the figure in box 2 and enter the result in this box
Multiply the figure in box 6 by 100 and enter the result in this box
Add 100 to the figure in box 4 and enter the result in this box
Divide the figure in box 7 by the figure in box 8 and enter the result in this box
Add the figure in box 9 to the figure in box 5 and enter the result in this box (a)
(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