Readers’ forum: Annual maxima

A client’s earnings from three different directorships in 2019-20 were as follows:

Following the seven-step computation in Regulation 21 SI 2001/1004 to calculate the ‘annual maxima’ we computed a repayment due of £1 076. HMRC insists however that the amount due is £831. As a matter of principle given that the difference is relatively small we would appreciate readers’ input as to the correct class 1 National Insurance liability due by this client.

In the copy of its workings provided on our request it appears that HMRC treated all of the earnings from employment A as ‘earning over upper earnings limit’; £3 584 of the earnings of employment B as ‘earnings at lower earnings limit (LEL)’ and £6 136 of the earnings of employment C as ‘earnings at LEL’.

We are unable to reconcile the figures and readers’ comments...