Richard December 2013

Good morning Sir,

I dont fully understand why in the answer the 2,220 is just discouting in the calculation only 676, as per my understanding is divided by 12 to get the monthy amount and then should be times 8 (I assume my understanding is incorrect).

Question info:
An assistant chef who was employed for eight months from 6 August 2016 to 5 April 2017 on a gross monthly salary of £2,200.

Answer:
Employer’s Class 1 NIC is therefore £1,682 (1,524 (2,200 – 676) at 13·8% x 8).

Workings

8,112 / 12 =676

Thanks for the clarification