National Insurance

Question 1

What is national insurance paid on

Answer 1

Paid on employed/self employed earnings

Calculated on pay period basis

Different tax to income tax

Each job taxed separately

Stops at state pension age

Question 2

Four classes of NIC

Answer 2

Class 1 paid by employees / employers
Class 2 paid by self employed
Class 3 voluntary nic
Class 4 paid by self employed

Question 3

Class 1 weekly basis

Answer 3

LEL £123 pw between (123-242 no nic but credit for state pension)

PCT £242 pw = 12%

UEL £967 pw = 2%

Question 4

Do pension contributions affect point of which national insurance is paid?

Answer 4

NO

Question 5

PCT for directors , UEL, rate and above UEL rate

Answer 5

for 22/23 = £11,908

UEL = £50,270

Main rate is 12.73%

Above UEL 2.73%

Question 6

Class 2 rate

Answer 6

Flat rate £3.15 per week

Small earnings exemption £6,725

Question 7

Class 4

Answer 7

9.73% on profits between £11,908 and £50,270

2.73% on profits over £50,270

Paid as part of self assessment