NICs

Question 1

Class 1 : Earnings

Answer 1

All earnings received in monetary form: salary, commission, bonus, vouchers exchangeable for cash, goods or services (readily convertible assets)

Do NOT include any taxable benefits

Calculated BEFORE allowable deductions ie pension contributions

Question 2

Class 1 - what period?

Answer 2

EARNINGS PERIOD - levied at same rate that we get paid

weekly, monthly, annually

Question 3

Exceptions for Class 1

Answer 3

Directors - even if paid monthly, they have an ANNUAL EARNINGS PERIOD

Question 4

Employment allowance

Answer 4

4000

EXCEPT:
-Co with a single director and no other employee

-Business whose total Class 1 secondary NIC liability was 100,000 or over in the PY (large Co)

Question 5

Class 1A : who + what

Answer 5

Employers

TAXABLE BENEFITS provided to employees - value of these benefits is generally the same value used when calculating income tax

Benefits taxed as earnings (class 1) are not also taxxed under Class 1a

Question 6

Class 1 who?

Answer 6

Primary : ee

Secondary : ers

Question 7

Class 2

Answer 7

Flat rate contributions : all self-employed (sole traders + partners) weekly rate

UNLESS profits below threshoold

Question 8

Class 4

Answer 8

Based on taxable trading profit

Aged 16 or over at the start of the tax year (ie 15 on 6th April 2021, dont pay it on 5th April 2022) and if he is 66 by 5th April 2022, don’t pay!!!

Question 9

Key date for self-employed for income tax and natioanl insurance - date that they must register as self-employed

Answer 9

31st Jan !!!!! following the relecant tax year