Chapter Two - National Insurance Flashcards
What is the employment allowance and what two circumstances restrict you from using the allowance?
The employment allowance is £4,000.
It cannot be used if you are the only employee in the company. If there are connected firms, they will have to share the allowance.
What are the two circumstnaces where the employers NIC secondary band starts at £962?
When there is an apprentice aged under 25 or an employee under 21
What is the payment due date for Class 1a NICs?
Class 1a is due on the 22nd July following end of tax year or on the 19th if paid electronically.
When an individual reaches State Pension Age, do the employee and employer still have to pay NIC?
Employee doesn’t but the employer does
Do you have to pay NIC for unapproved and approved share option schemes?
With an approved scheme you do not have to pay NIC but with an unapproved scheme you do
If an individual has more than one job and the companies are and are not connected, how is the NIC charged?
If thet are not connected, the NIC are applied seperately, so if they are all under the £183 p/w then there will be no NIC to pay. If they are connected, the weekly income is classed as one so will be taxed if above the £183 p/w threshold.
Married women can opt to pay NIC at a reduced rate of what? and what three things will cause it to be revoked? and what is the consequence of this reduced rate?
The reduced rate is 5.85%. It will be revoked if you divorced, remarried or earnt under the £120 LEL for more than 2 tax years. The consequence is that you will get a reduced new state pension.
