NIC Calculations, June 2006 paper

[Arianna]

I'm revising for the December DNP exam using the past papers on this site, but I don't really understand the NIC calculations on the most recent paper(the first one I've tried). Could someone explain them for me?

The gross pay is 4050 for month 1, table F, and the calculation for the NI is

2730-408=2322 x 9.4%-0.83=217.44
4050-2730=1320 x 1%=13.20
Total=230.64

The part I don't understand is -0.83. Where does that come from?

Thanks in advance.

[loz9791]

Thats the rebate part which is 1.6% on earnings between 82.01 and 94.00. It is given in the tables for the rates... my question would be do you get all the tables and the rather helpful flowchart to work out the NI coding. I'd be in trouble if i need to learn all that as well.

[Arianna]

Thanks, I get it now!

I have no idea if we get that flowchart for working out the NI coding-it would be really helpful! That is one of the bad things about doing the course by distance learning, its more difficult to ask that sort of question.

[EmAngier]

The Flow chart is included in the Tables for the exams.
Have a look at the downloads in the exam section of the website.

Have a look here,
http://www.aat.org.uk/students/display/store4/item995/

Em