Chapter 11: National Insurance

Question 1

What do earnings include for class 1 primary and
Age for class one primary

Answer 1

earnings include gross pay, cash equivalents like shopping voucher but exclude non-cash benefits (eg cars)

Over 16 to state pension age

Question 2

Age for class one secondary

Answer 2

over 16, no age limit

Question 3

When is employment allowance not available

Answer 3

Companies where director is sole employee

Employers contributions are £100.000 or more for the previous tax year

Question 4

Class 1a :
Who suffers
What are they due on

Answer 4

Suffered = ERS

due on benefits (eg cars), not due on exempt benefits or on amounts treated as earnings as they are assessed to Class 1 NICS

Question 5

Date of payment
Class 1 and class 1a

Answer 5

class 1 - payable by 22nd each month

class 1a - 22nd july after the tax year

Question 6

class 2
Who pays
What age
How is it paid

Answer 6

Self employed

Over 16 no limit

collect through self - assessment (31 Jan following the end of the tax year along with balancing payment for income tax and class 4 NIC)

HMRC can collect unpaid tax through tax code

Question 7

Class 4
Who suffers
What age
On what

Answer 7

Self employed
over 16 to state pension age
On profits (trading profits - trading losses b/fwd)