Chapter 24 - Class 4 NIC Flashcards
1
Q
Who pays Class 4 NIC?
A
Self-employed earners between 16 & the pensionable age
2
Q
What rate are Class 4 NICs paid at on profits between £12,570 - £50,270?
A
6%
3
Q
What rate are Class 4 NICs paid at on profits above £50,270?
A
2%
4
Q
True or false
Class 4 NICs are payable in the same way as income tax under self assessment
A
True
5
Q
When are payments on account due for Class 4 NICs?
A
31 January in the tax year & 31 July following the tax year
6
Q
When is a balancing payment due for Class 4 NIC?
A
31 January
7
Q
When do the ‘annual maxima’ rules apply?
A
Where the earner either has more than 1 employment or is both self-employed & employed
8
Q
Can Class 1 primary contributions be deferred if the taxpayer has more than one employment?
A
Yes
The employee will pay Class 1 contributions at 2%
