12. National insurance Flashcards
1
Q
Main differences between employee and employer class 1 contributions
A
- employee: no tax relief. employer: tax relief.
2. employee: 16 too retirement. employer: working life
2
Q
What is the allowance for employer class 1? When is this not valid?
A
£4,000
Not valid where
- director is sole employee
- L/y employers class 1 > £100,000
3
Q
When is class 1 due?
A
19th if paper, 22nd if electronic (default the latter).
4
Q
Class 1 a is to be paid by who and on what?
Due when?
A
By the employer on taxable benefits of the employee.
Also due 19th/22nd.
5
Q
NIC payable by the self employed:
What are they?
When are they due?
A
Class 2: flat rate @ £3.05 a week
Class 4: based on earnings
Due at same time as income tax
6
Q
When is Class 2 not valid?
A
Where profits < £6745
7
Q
What must you not forget?
A
If sole trader has staff, Class 1 and 1a contribution rules apply.
