NIC (2) Flashcards
When is the employer required to pay Class 1A contributions?
For employees provided with taxable employment income benefits
How is Class 1A contributions calculated as?
13.8% of taxable benefit
When must Class 1A contributions be paid
19 July by cheque
22 July electronically
What are self-employeed required to pay in a class 2 NIC?
Flat rate contribution of £45 per week for those weeks trading if taxable trading profits exceed £12570
How is Class 2 NIC payable?
Under self-assessment system and is due for payment on 31 January the following tax year
How is Class 4 NIC calculated as?
9% of profits between £12570 and £50270
2% of profits in excess of £50270
When are no contributions payable?
If taxpayer is older than state retirement age at start of tax year
How are class 4 NICs collected?
By HMRC through the self-assessment system
As Class 4 NICs are paid at the same time as the associated income tax liability?
Part of payments on account and balancing payments
Are benefits included in NIC Class 1?
No
Are benefits included in NIC Class 1A?
Yes
Employees class?
Class 1
Employers class?
Class 1A
Employement allowance method?
Deducted from NIC calculations
When is employment allowance in Class 1A not available?
Director is sole employee
Total employer NIC liability in previous tax year was over £100000
