NICs Flashcards
Who pays primary Class 1 NICs?
Employees
Who pays Class 3 NICs?
Employees and Self-Employed
Who pays Secondary Class 1 NICs? What is it based on?
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
Who pays Class 1 A NICs?
What is it based on?
Employers
Fringe benefits
Who pays NICs if you are Under 21 or an apprentice under 25?
Employers
Who pays Class 2 NICs
Self-Employed
Who pays Class 4 NICs?
Self-Employed
Name all of the NICs classes which employees potentially pay
Class 1 & Class 3
Name all of the NICs classes which employers potentially pay
Secondary Class 1
Class 1 A
Kids 1
Name all of the NICs classes which self-employed individuals potentially pay
Class 2, Class 3, & Class 4
What are the bands and rates of Class 1 NICs in 22/23? (name the thresholds)
- 0% up to £11,908 Primary Threshold
- 13.25% up to £50,270 Upper Earnings Limit
- 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
What are the bands and rates of Class 3 NICs in 22/23? (name the thresholds)
Class 3 NICs are optional, they are just a flat rate fee of £15.85 per week
How are Class 3 NICs paid?
Monthly direct debit or quarterly
What are the bands and rates of Class 1 A NICs in 22/23? (name the thresholds)
Flat rate of 15.05% based on taxable benefit
What are the bands and rates of Secondary Class 1 NICs in 22/23 and who pays it? (name the thresholds)
- 0% up to £9,100 (Secondary Threshold)
- 15.05% thereafter
Employers pay it based on employee salary