CH11 - National Insurance

Question 1

Class 1 Employee NIC

Answer 1

0% up to 12,570
12% on gross earnings between £12,571 and £50,270
2% on gross earnings of £50,271 and above
Due 22nd of PAYE month

Question 2

Class 1 Employer NIC

Answer 2

No upper limit
13.8% on gross earnings above £9,100
Doesn’t include non-cash vouchers or benefits

Question 3

Gross Earnings What’s included and what’s not

Answer 3

Wages, salary, overtime, comission, bonus
Sick pay
Tips
Travel between home and work
Non-cash vouchers

Exclude: car
Pensions

Question 4

Class 1 NIC Employment Allowance

Answer 4

£5,000 PA

Question 5

Class 1A NIC

Answer 5

13.8% on all taxable benefits
Remember taxable benefit is worked out from all workings known thus far e.g. car, private fuel
Due 22nd July following end of the tax year

Question 6

Personal pension contributions and mobile phone include or not?

Answer 6

Exclude both employers and employees contribution into PPC
1 mobile phone is allowed per employee

Question 7

Class 2 Contribution

Answer 7

Everyone self employed over 16

Fixed rate - £3.45 per week
Payable 31st Jan after end of tax year self-assessment

Question 8

Class 4 Contribution

Answer 8

On tax adjusted trading profits aftertrading losses
9% on £12,570-£50,270
2%