NIM02065 - Class 1 NICs : Earnings of employees and office holders : Arrears of pay

Any arrears of pay, for example a backdated pay increase, must be added to any other earnings received by the employee in the pay period under consideration and NICs assessed on the total amount.

Example

In a particular month an employee who is regularly monthly paid receives :

顿别蝉肠谤颈辫迟颈辞苍听 Amounts
Normal earnings 拢1800
Arrears of pay聽 拢1000
Total 拢2800

NICs must be assessed on the total of 拢2800 using the monthly secondary threshold, lower earnings limit (LEL), primary threshold and monthly upper earnings limit (UEL). See NIM01000.