Ch 10: National Insurance

Question 1

Class 1 Primary NIC paid by and taxed on?

Answer 1

Employees. Earnings on pay, bonuses, vouchers and excess mileage allowance

Question 2

Class 1 Secondary NIC paid by and on what?

Answer 2

Employers. On earnings

Question 3

Class 1A NIC paid by and on what?

Answer 3

Employers. On non cash benefits

Question 4

What is employment allowance?

Answer 4

Allows for employers to deduct from class 1 due

Question 5

Allowance for employment allowance?

Answer 5

£5k per year per employer deduction on class 1 secondary NIC

Question 6

Due dates on class 1&1A NIC

Answer 6

Class 1: payable with PAYE after the end of the tax month
Class 1A: payable by 22nd July following end of tax year

Question 7

Class 2 NIC paid by who and on what?

Answer 7

Paid by sole traders and partners. Flat rate of £3.15 per week

Question 8

Class 4 NIC paid by who and on what?

Answer 8

Sole trades and partners on trading profit less any trading loss relief

Question 9

How is Class 4 NIC paid?

Answer 9

Paid via self assessment