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Flashcards in Income Tax - NIC (National Insurance Contribution) & ISA Deck (4)
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1

What is National Insurance Contribution

You pay NIC to qualify for certain benefits including the state pension. It applies if you are between 16y and 65y earning more than $8060 annually and for self-employed $5965 annually.

2

What are the types of NIC's?

Here are the types of NIC's

1. Class 1 P (Employees)
2. Class 1 S, Class 1A (Employers)
3. Class 2 and Class 4 (Self-employed)

3

1. Class 1 Primary paid by?
What are the rates?

2. Class 1 Secondary paid by?
What are the rates?

3. Class 1A paid by?

Paid by employees

Rates are
Between 8060-43000 12%
43,000 and above 2%

Paid by employers

Rates are
8,112 and above 13.8%

Paid by employers
For non-cash benefits at the rate of 13.8%

4

4. Class 2 paid by?
What are the rates?

5. Class 4 paid by?
What are the rates?

4. Paid by self-employed
2.80 a week above 5,965

5. Paid by self employed
8,060-43,000 at the rate of 9%
43,000 and above at the rate of 2%