NIM29024 - Special cases: Class 1 - mariners: DL Earnings Periods - voyage(s) began in one tax year and ended in another - example

Deep Sea Fishing Ltd engaged a mariner to serve on a voyage that began on 14 December 2020 and ended in the following tax year on 15 April 2021.

The Mariner was paid 拢14,900, which included paid leave to 17 June 2021.

Earnings for the periods of work paid are:

  • 14 December 2020 to 5 April 2021: 拢9,200
  • 6 April 2021 to 15 April 2021: 拢1,600
  • 16 April 2021 to 17 June 2021: 拢4,100

The earnings periods are:

  • 14 December 2020 to 5 April 2021 (sixteen weeks): primary and secondary due at 2020 to 2021 rates on 拢9,200

Primary NICs due is (拢9,200 - 拢2,928(拢183 x16)) x 12% = 拢752.64

Secondary NICs due is (拢9,200 - 拢2,704(拢169 x16)) x 13.3% = 拢863.97

  • 6 April 2021 to 17 June 2021 (ten weeks); primary and secondary at 2021 to 2022 rates on 拢5,700.

Primary NICs due is (拢5,700 - 拢1,840(拢184 x10)) x 12% = 拢463.20

Secondary NICs due is (拢5,700 - 拢1,700(拢170 x10)) x 13.3% = 拢532.00