This example demonstrates how to apportion the amount at Step Seven of the deemed payment calculation between the deemed payment and the secondary Class 1 NICs on that payment. This example is also reproduced at ESM3172using a step by step guide.
Ms G is a worker whose service company has earned income from a relevant engagement.
The service company paid her a salary of 3,000 during the year. The amount at Step Seven is 30,000. The secondary Class 1 NICs payable in respect of the deemed payment are 3,112.