7. National Insurance Contributions & State Benefits Flashcards
1
Q
National Insurance Contributions (NIC)
A
Tax on the income of employees, self employed and employers
2
Q
NIC Classes
A
Class 1 - paid by employees
Class 2 & 4 - paid by self employed
Class 3 - voluntary contributions to improve rights for benefits
3
Q
NICs are payable above the primary threshold of:
A
£12,570
4
Q
What benefits qualify for someone who pays Class 1 NIC
A
Sickness benefits
State pension
5
Q
What are the % payments of NIC
A
- 10% on earnings between (PT) £242 per week & (UEL) £967 per week
- Further 2% on earnings above £967
