nics

Question 1

how many marks in exam

Answer 1

2-4 but max six in exam

Question 2

what is nics

Answer 2

Payment of NICs qualifies individuals to receive certain social security benefits (most notably the state pension). In practice, however, the link between contributions paid and benefits received is vanishingly weak and NICs essentially act as a second income tax.

Question 3

what do nics tax fund

Answer 3

welfare services for people who need it

Question 4

what is the tax structure of nics

Answer 4

its a regressive tax structure

Question 5

why is it regressive in nature

Answer 5

because as the incomes of individuals increase, this reduces their need for welfare services

Question 6

how to calculate mileage benefit for both employee and employer class 1

Answer 6

(total BU miles) x (er-45p)

Question 7

what is class one ( employee)

Answer 7

this is the amount that is suffered by the employee but paid by the employer

Question 8

what is class one ( employer)

Answer 8

this is the amount that is suffered and paid by the employer

Question 9

what is class 1A Employer

Answer 9

amount that is suffered and paid by the employer

Question 10

what is class 1 meaning

Answer 10

Paid by both employer &
employee on the cash benefits (salary / wages etc.)

Question 11

what is class 1a meaning

Answer 11

Paid by employer on taxable
benefits disclosed on a P11D form

Question 12

how to calculate class 2 Nic?

Answer 12

1. does your trading profit exceed 12570?
2. if it does then you multiply (3.45 x number of weeks of employment in the year)

Question 13

how to calculate class 4 nics?

Answer 13

1. tax your trading profit up tot the bands given in tax table