12. National insurance

Question 1

What type of national insurance does the employed pay? 
At what ages? 
Is this tax deductible?
What is it based off?
What are the deadlines for this?

Answer 1

Class 1 employee
- 16 - retirement age
- Not tax deductible
- Based off income, vouchers and reimbursed travel expenses
- Deadlines:
22nd of each month if electronic (assume)
19th if PAYE

Question 2

What type of national insurance do employers pay (2)?
At what ages? 
Is this tax deductible?
What is it based off?
What are the deadlines for this?

Answer 2

Class 1 employer
- 16+
- Not tax deductible
- Based off income, vouchers and reimbursed travel expenses
- Deadlines:
22nd of each month if electronic (assume)
19th if PAYE

Class 1A: On employment benefits.
- Assume paid electronically

Question 3

What NI do the self-employed pay?

• When is it paid?
• On what?

Answer 3

Class 2

• 16 to retirement age
• Paid annually 31st Jan
• £3 a week

Class 4

• Paid at same time as income tax on self-assessment
• Paid on trading profit.