Module 2: Employment Income Flashcards
1
Q
Normal method (simple average) - loans
A
(Loan value when made + loan value when repaid) / 2
X
N/12
2
Q
Alternative method (weighted average) - loans
A
Loan balance 1 x n/12
Loan balance 2 x n/12
Etc
3
Q
Employer NIC payments
A
Salary - 13.8% Class 1
Benefits - 13.8% Class 1A
4
Q
Employee NIC payments
A
Class 1 NIC 12%/ 2% on salary
Nothing on benefits
5
Q
Approved pension scheme benefit
A
Taxed under employment income
6
Q
Payments in lieu of notice
A
Contractual right therefore taxable under employment income
7
Q
Ex-gratia lump sum
A
Exempt from tax
8
Q
Statutory redundancy payments count towards
A
£30,000 limit
