Chapter 8 - 1.2 - Class 2 NICs Flashcards
1
Q
How are Class 2 contributions calculated?
A
At a flat rate of £3.45 per week
2
Q
What is the annual lower profits limit (LPL) for paying Class 2 NICs?
A
£12,570
3
Q
What is a unique rule we have to remember here?
A
Payment is treated as made for individuals whose profits are between £6,725 (the small profits threshold) and the lower profits limit (they receive benefits but dont have to pay as much)
4
Q
When must a trader register with HMRC for class 2 NICs purposes by?
A
31st January following the end of the tax year
