IT - National Insurance

Question 1

Earnings

When are Shares Subject to Class 1 NICs?

Answer 1

If Readily Convertible Assets.

e.g., Quoted Shares

Question 2

Earnings

When Are Mileage Payments Subject to Class 1 NICs?

Answer 2

To The Extent Mileage Payments Exceed 45p Per Mile.

Irrespective of Miles Travelled

Question 3

Employment Allowance

The Employment Allowance Allows Employers to:

Answer 3

Deduct £5,000 From Their Secondary Class 1 NIC Liability for a Tax Year.

Question 4

Employment Allowance

The Employment Allowance is Available to The Extent That:

Answer 4

The Employer’s Class 1 NICs Liability For The Previous Year is Less Than £100,000.

Question 5

Employment Allowance

The Employment Allowance is Unavailable to Claim in:

Answer 5

One-Man Companies

Employee-Director Ran

Question 6

Class 4 Contributions

Class 4 NICs are Payable on Trading Profits at:

Answer 6

• 6% Between £12,570 & £50,270;
• An Uncapped 2% on The Excess.

Question 7

Class 4 Contributions

Sole Traders Pay Class 4 NICs When Aged Between:

Answer 7

16 and ‘Pensionable Age’.

Individuals Reach Pensionable Age at 66.

Question 8

Class 4 Contributions

How Are Class 4 NICs Paid?

Answer 8

Under Self-Assessment.

As With Income Tax

Question 9

Class 4 Contributions and Losses

Losses Utilised Under s.64 ITA 2007 Can be:

Answer 9

Used Against Trading Income for Class 4 NIC Purposes.