Why are Ee & Er NIC figures in NIC Table A not 11% & 12.8% ?

[RChapman]

Hi Guys,

Just wondering why the figures detailed in NIC Table A for Employee and Employer NIC's are not exactly 11% and 12.8%. The figures are always out a little.

Why is this? I guess there must be a reason as surely its not too difficult for HMRC to work out a couple of percentages properly.

Any explaination would be most welcome.

Cheers

[AJHenderson]

Its to do with the rounding of the PAYE Software currently used throughout the UK.

Its the same reason why everyone underpays tax in the UK.

[RChapman]

Hi AJHenderson,

Im not sure if that is the reason and this is why.

You see per the book the Employees NIC is always five pence more than the figure you get if you worked out exactly 11%. Now i understand the argument about rounding but this is not true for the 619 figure. Per table A there are two decimal places and im sure there are other figures in table A with two decimal places. Furthermore if i was to round up the 11% figure i would not get the second decimal place as detailed in table A. Which makes me think there might be another reason.

Also Employers NIC is mainly six pence more than 12.8% each time. However when you look at the 619 figure it is six point eight pence more which confuses things further.

Any futher help people can provide would be much appreciated.