8 - national insurance contributions Flashcards
who pays class 1 NICs
paid by employees and employers
who pays class 1A NICs
employers
who pays class 2 NICs
self employed individuals
who pays class 4 NICs
self employed individuals
what is the deadline for class 1A contributions to be paid
22 july following the end of the tax year to which they relate
who pays class 1 primary and secondary contributions
employees pay primary contributions
employers pay secondary contributiosn
are taxable benefits included in earnings for the sake of Class 1 NICs contributions
no
are taxable benefits included in earnings for the sake of Class 1 NICs contributions
no
what type of NIC does employement allowance relate to
class 1
what age do you pay class 1 NICs?
16 - state pension age (66)
how much is the employment allowance?
5000 PA
what would be two reasons why an employer couldn’t receive employment allowance
the company has a single director and no other employees
a businesses class 1 NIC liability was 100,000 or over in the previous year
what NIC applies to taxable benefits
class 1A
what is the rate for class 1A payments
15.05%
what is the age range for class 2 NICs
16 - 66
what is the lower profits limit for class 2 contributions
11,908
how much is the class 2 contributions
3.15 per week of self employment
what is the small profits threshold and what is the function of it
6,725, if profit is higher than this but lower than the lower profits limit then class 2 NIC is treated as having been made so this protects their entitlement to contributory benefits
what amount is class 4 NICs based on
taxable trading profit
what form do you use to register with HMRC for income tax, class 4 and class 2
CWF1
what form do you use to register with HMRC for income tax and class 4
SA1
when does a penalty apply for late registration with HMRC
5 october following the end of the tax year in which self employment commenced
