Chapter 14 Flashcards
1
Q
Who pays class 1 NICs
A
Employees (class 1 primary)
Employers (class 1 secondary)
2
Q
Who pays class 1A NICs
A
Paid by employers on BIKs
3
Q
Who pays class 1B NICs
A
Paid by employers on grossed up value of earnings in a PAYE settlement agreement
4
Q
Who pays class 2 NICs
When is payment due
A
Self employed individuals
31st January after the tax year
5
Q
Who pays class 4 NICs
A
Paid by self employed on taxable trading profits
6
Q
What amounts attract class 1 primary NICs
A
Earnings are gross pay, bonus, cash payments, excess mileage allowance, round sum allowances eg loan write off and vouchers
7
Q
What is the rate of Class 1A NICs and who pays
A
15.05%
Employer pays
8
Q
How old does a sole trader need to be to stop paying class 2 and class 4 NICs
A
State pension age
