§ Lord Dixon-Smith
asked Her Majesty's Government:
Why the End of Year Summary P14 for employees' income tax and national insurance has space for seven digits for the total of employees' and employers' contributions payable for national insurance, thereby implying that this could be a hundred times greater than the salary earned, for which there is space for only five. [HL1851]
§ Lord McIntosh of Haringey
The five-digit box on the End of Year Summary P14 records only the amount of the employee's earnings above the earnings threshold up to and including the upper earnings limit.82WA This is the amount of earnings on which the employee's national insurance contributions are payable.
Because employers' national insurance contributions are payable on all earnings above the earnings threshold, it is possible for the total of employee's and employers' contributions payable to consist of seven digits (whole pounds) plus two-digits (pence). Consequently, a larger box is needed on the form for this entry.