Chapter 2 Flashcards
what ar ethe four classes of nics
1 - employ 2 - self employed (flat rate) 3 - volutary
4 - self e,poyed (percentage rate
when is it issued
16th birtdhay
what is the entitlement to state beenoefits
new state pension, job seekers allowance (class 1)
bereveanment payments , maternity allowance, new style contribution based employment support
what are the factors of employemnet
holiday set hours
superviosr
what would a self emploted person recieve through nics
new state pensiona and berevenamnet - not job seeking allowance
how are eanrings claculated
bonueses - pvertime - matrernity - incetive payuments
are NIcs payable on shares
yes as long as theyre easily convertible
who pays class one
employees and employers
when would changes occur for nics
6 april
is there an upper limit
no
when are they payable
16 - 66 (67 in 2028)
what if they are passed the statae pensions age
employee does not - employer does
what is the primary threshold
242 - those have to pay nics level 1
what is the secnodary threhsolf
for employers - 21 and over - armed veterans after first tear or service
what is LEL
lower earnings limit - mimum - m level
of earnings needed for an employee to
be entitled to contributory social security
what is the UEL
upper earnings limit - e maximum level of
earnings on which an employee must pay
NICs at the main rate
ust - aust vust are at what rate
967
what about FUST
481 weekly - The freeport
upper secondary threshold (FUST)
what id they earn lower than 232 employees
dont pay NICS
what abou an employer
the first £175 of earnings is free of employer
contributions.
is there an allowance
£5,000
where do fring ebenefits come into this
subject to 1a of class 1
how is national insurance
collected via paye
if i were to leave the uk and work aborad will hmrc and employer is in the uk what would happen
hmrc will continue colectiom nof nics dor 52 weeks
what are the special categories for employemnet s they should be treated for empoyees nic contributiosn
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
why is self employed pay lower nics
, self-employed
NICs do not confer entitlement to new style Jobseeker’s
Allowance- therefore do not qualify
why does class 2 differ from class 4
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.
if youre self employed and earn 6725 or less what happens
dont pay nics - or you pay class 2 voltarily
what is class 4
are primarily a tax on profits for self-employed individuals, rather than a contribution toward any specific benefits. - not linked to anything
can you pay class 4 under 16 or over spa
no
why would one oay class 3
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
how can you reduce nics
o pay
profits out as dividends rather than as directors’ fees,
salary or bonus. Dividends are not earnings for NICs
