Question 1

What is exemption amount on taxable termination payment for Class 1A?

Accepted Answer

Class 1A National Insurance is paid by employers on the cash equivalent of certain taxable benefits and on taxable termination payments in excess of the £30,000 exemption.

Question 2

What is bezair about benefits included in the payroll?

Accepted Answer

It does not matter whether the benefits are included in the payroll or reported on form P11D – Class 1A National Insurance still applies.

Question 3

When Class 1A doesn't get paid and what Class NI can it overtake in priority?

Accepted Answer

Class 1A is not paid on benefits which have already been charged to Class 1 secondary NICs Class 1B takes priority over Class 1A.

Question 4

What is due date for Class 1A NIC?

Accepted Answer

22nd July for elect.pmts 19th july otherwise

Question 5

When Class 1A gets paid on termination payment and what needs to be done before pmts is made?

Accepted Answer

Class 1A NICs in respect of cash termination payments must be reported on a FPS when or before the termination payment is made and payment must be made via the PAYE system.

Question 6

What is penalty for late submission of P11D (b) & P11d?

Accepted Answer

Late filing penalties; P11D(b) - £100 p.m. (or part month) per group of 50 employees P11D - £300 per form & additional £60 per day for continued failure.

Question 7

Penalty for incorrect P11D(b)

Accepted Answer

is up to 100% of the NICs lost The amount of the penalty depends on the behaviour giving rise to the inaccuracy and the level of disclosure.

Question 8

What is due date for Class-1B NICs?

Accepted Answer

22nd October (elect.pmt) or 19th Oct. otherwise

Question 9

What are penalties for plate payments of Class 1A or 1B NICs?

Accepted Answer

5% if 30 days late add.5% up to 5mts after 1st penalty add.5% upt o 11mts after 1st penalty

Question 10

How is taxed termination Payments under; - s.62 ITEPA 2003 (contractual payment for services and PENP) - x.401 ex gratia, excluding PEnp this time over £30,000

Accepted Answer

Termination Payments taxed under ITEPA 2003 s.62 (contractual paymetn for services) and PENP is subjet of PAYE and Class 1 Termination payments taxed under ITEPA 2003 s.401 (ex tratia, excluding PENP) above £30,000 is subject to PAYE, Class 1A (doesn't apply to Class 1 or P11d)

Question 11

How ara taxed Private expenses (including non-qualifying relocation paments) paid to supplier but arranged by employee (settlement of personal liablity)

Accepted Answer

Subject to Class 1 & P11d only

Question 12

How is taxed non-cash voucher?

Accepted Answer

Class 1 & P11d

Question 13

How is taxed general benefits; loan written off?

Accepted Answer

Subject to Class 1 & P11d

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PT'24 CH 22 - Class 1a & 1b NIC Flashcards

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