NICs Flashcards

1
Q

Who pays primary Class 1 NICs?

A

Employees

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2
Q

Who pays Class 3 NICs?

A

Employees and Self-Employed

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3
Q

Who pays Secondary Class 1 NICs? What is it based on?

A

Employers based on employees income

  • Just the bog standard NICs that employers pay, it’s the Class 1 A (fringe) and U21s Class 1 that are funky
  • Notice the similarity to Primary Class 1
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4
Q

Who pays Class 1 A NICs?
What is it based on?

A

Employers
Fringe benefits

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5
Q

Who pays NICs if you are Under 21 or an apprentice under 25?

A

Employers

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6
Q

Who pays Class 2 NICs

A

Self-Employed

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7
Q

Who pays Class 4 NICs?

A

Self-Employed

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8
Q

Name all of the NICs classes which employees potentially pay

A

Class 1 & Class 3

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9
Q

Name all of the NICs classes which employers potentially pay

A

Secondary Class 1
Class 1 A
Kids 1

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10
Q

Name all of the NICs classes which self-employed individuals potentially pay

A

Class 2, Class 3, & Class 4

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11
Q

What are the bands and rates of Class 1 NICs in 22/23? (name the thresholds)

A
  1. 0% up to £11,908 Primary Threshold
  2. 13.25% up to £50,270 Upper Earnings Limit
  3. 3.25% above £50,270
  • You get state benefits entitlement after £6,396 (LEL)
  • PT is just £12,570 but in 22/23 it was averaged down because the start of the tax year it was lower. 23/24 onwards its just the same as the income tax bands
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12
Q

What are the bands and rates of Class 3 NICs in 22/23? (name the thresholds)

A

Class 3 NICs are optional, they are just a flat rate fee of £15.85 per week

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13
Q

How are Class 3 NICs paid?

A

Monthly direct debit or quarterly

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14
Q

What are the bands and rates of Class 1 A NICs in 22/23? (name the thresholds)

A

Flat rate of 15.05% based on taxable benefit

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15
Q

What are the bands and rates of Secondary Class 1 NICs in 22/23 and who pays it? (name the thresholds)

A
  • 0% up to £9,100 (Secondary Threshold)
  • 15.05% thereafter

Employers pay it based on employee salary

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16
Q

What are the bands and rates of Kids Class 1 NICs in 22/23? (name the thresholds)

A
  1. 0% up to £50,270
  2. 15.05% thereafter
  3. Called Upper Profits Limit

Every employer NIC is 15.05% it’s just a question of thresholds, of which there is a maximum of 1

17
Q

What are the bands and rates of Class 2 NICs in 22/23? (name the thresholds)

A
  • 0% up to £6,725 in profits (We are calling the Class 2 Threshold)
  • £6,725 thereafter £3.15 per week

Class 2 is flat rate and small amount

18
Q

What are the bands and rates of Class 4 NICs in 22/23? (name the thresholds)

A
  • 0% < £11,908 < 10.25% < £50,270 < 3.25%
  • Both “profits limit” (Upper & Lower)

Very similar to Primary Class 1. Difference is it’s 10.25% not 13.25% & that’s all