How to calculate National Insurance (NI)

To calculate NI you will need to take the Annual salary / 12, this will give us a full monthly salary figure.

Then minus any none Nic-able elements such as charitable donations, Expenses etc, if you are unsure if a pay element is Nic-able or not you can navigate to Edupay --> setup --> pay details.

Salary: £5000 / month

Expenses: £350

Charity Donation: £25

Backpay: £600

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Gross: £5,975

Nic-able pay: £5,600

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National Insurance Thresholds (EE)

Based on NI code A

0-1048 = 0%

1048 - 4189 = 8%

4189 + = 2%

Example: Nic-able pay £5,600

0-1048 = £0 (0%)

1048 - 4189 = £251.28 (8%)

4189 - 5600 = £28.22 (2%)

Total NI payable = £279.50

National Insurance Thresholds (ER)

Based on NI code A

0-417 = 0%

417 + = 15%

Example: Nic-able pay £5,600

0-417 = £0 (0%)

417-5600= £777.45 (15%)

(For official guidance on Ni codes other than A: Government Guidance)