Chapter 2

Question 1

what ar ethe four classes of nics

Answer 1

1 - employ 2 - self employed (flat rate) 3 - volutary
4 - self e,poyed (percentage rate

Question 2

when is it issued

Answer 2

16th birtdhay

Question 3

what is the entitlement to state beenoefits

Answer 3

new state pension, job seekers allowance (class 1)
bereveanment payments , maternity allowance, new style contribution based employment support

Question 4

what are the factors of employemnet

Answer 4

holiday set hours
superviosr

Question 5

what would a self emploted person recieve through nics

Answer 5

new state pensiona and berevenamnet - not job seeking allowance

Question 6

how are eanrings claculated

Answer 6

bonueses - pvertime - matrernity - incetive payuments

Question 7

are NIcs payable on shares

Answer 7

yes as long as theyre easily convertible

Question 8

who pays class one

Answer 8

employees and employers

Question 9

when would changes occur for nics

Answer 9

6 april

Question 10

is there an upper limit

Answer 10

no

Question 11

when are they payable

Answer 11

16 - 66 (67 in 2028)

Question 12

what if they are passed the statae pensions age

Answer 12

employee does not - employer does

Question 13

what is the primary threshold

Answer 13

242 - those have to pay nics level 1

Question 14

what is the secnodary threhsolf

Answer 14

for employers - 21 and over - armed veterans after first tear or service

Question 15

what is LEL

Answer 15

lower earnings limit - mimum - m level
of earnings needed for an employee to
be entitled to contributory social security

Question 16

what is the UEL

Answer 16

upper earnings limit - e maximum level of
earnings on which an employee must pay
NICs at the main rate

Question 17

ust - aust vust are at what rate

Answer 17

967

Question 18

what about FUST

Answer 18

481 weekly - The freeport
upper secondary threshold (FUST)

Question 19

what id they earn lower than 232 employees

Answer 19

dont pay NICS

Question 20

what abou an employer

Answer 20

the first £175 of earnings is free of employer
contributions.

Question 21

is there an allowance

Answer 21

£5,000

Question 22

where do fring ebenefits come into this

Answer 22

subject to 1a of class 1

Question 23

how is national insurance

Answer 23

collected via paye

Question 24

if i were to leave the uk and work aborad will hmrc and employer is in the uk what would happen

Answer 24

hmrc will continue colectiom nof nics dor 52 weeks

Question 25

what are the special categories for employemnet s they should be treated for empoyees nic contributiosn

Answer 25

domestic workers and office cleaners, agency workers, many lecturers and instructors, ministers of religion, workers in the film and television industry, and labour-only subcontractors

Question 26

why is self employed pay lower nics

Answer 26

, self-employed NICs do not confer entitlement to new style Jobseeker’s Allowance- therefore do not qualify

Question 27

why does class 2 differ from class 4

Answer 27

NICs provide benefit entitlements (like the State Pension), while Class 4 NICs do not. Class 2 NICs are a flat-rate contribution paid weekly or annually, while Class 4 NICs are based on a percentage of profits.

Question 28

if youre self employed and earn 6725 or less what happens

Answer 28

dont pay nics - or you pay class 2 voltarily

Question 29

what is class 4

Answer 29

are primarily a tax on profits for self-employed individuals, rather than a contribution toward any specific benefits. - not linked to anything

Question 30

can you pay class 4 under 16 or over spa

Answer 30

no

Question 31

why would one oay class 3

Answer 31

s to increase entitlement to the new State Pension and other benefits howver, hey can only be paid for a year if the person has insufficient class 1 or class 2 NICs for that year

Question 32

how can you reduce nics

Answer 32

o pay profits out as dividends rather than as directors’ fees, salary or bonus. Dividends are not earnings for NICs