Chapter 8 - 2.1 - Class 1 NICs

Question 1

Who are class 1 NICs payable by?

Answer 1

By both employees and their employers

Question 2

Who pays class 1 primary?

Answer 2

Employees (between age 16 - 66)

Question 3

Who pays class 1 secondary?

Answer 3

Employers (aged 16 onwards, no upper limit)

Question 4

What do employees pay on class 1 primary NICs?

Answer 4

Cash earnings (before deductions) plus vouchers exchangeable for cash, goods or services

Question 5

What do employers pay on class 1 secondary NICs?

Answer 5

Cash earnings (before deductions) plus vouchers exchangeable for cash, goods or services

Question 6

When is the due date of class 1 NICs and how?

Answer 6

Payable under PAYE by 19th of each month

Question 7

When is the deadline extended to and why?

Answer 7

Extended to the 22nd of each month if payment is electronic

Question 8

How must employers with over 250 employees pay?

Answer 8

Electronically

Question 9

When can they pay quarterly?

Answer 9

If average monthly total PAYE (income tax and NICs) < £1,500

Question 10

What should you remember when calculating NICs?

Answer 10

To round to the nearest pound at each stage of your workings