Task 7 - National Insurance Conts

cat3591 Registered Posts: 1
If you are given the amount of Class 1 contributions being paid by the individual, how do you calculate backwards to work out how much employer class 1 contributions will be paid? Thanks


  • Pian32
    Pian32 MAAT Posts: 464
    Split the tax into 12% and 2%

    (Tax above 4956.96 will have been taxed at the 2% rate)

    Divide the two taxes by their rate.

    LR/0.12 = Tax on lower amount
    HR/0.02 = Tax on higher amount

    Add them together and add on the 0% amount. (If you are in the higher rate this can also be done as 50,000 + (amount taxed at higher rate))

    Take off the employer 0% tax (Is currently slightly lower than employee)

    Multiply by 13.8%
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