Week 5 - National Insurance

Question 1

What are the different NIC classes?

Answer 1

Class 1 - payable by employees and their employers
Class 2 - flat-rate weekly contributions payable by the self-employed. It has now been abolished
Class 3 - flat-rate weekly contributions paid voluntarily
Class 4 - payable by the self-employed as a percentage of taxable profits

Question 2

What are the primary class 1 contribution percentages? (On weekly and monthly pay)

Answer 2

0% first £242 or £1048
8% up to £967 or £4189
2% on further earnings

Question 4

What are the NIC percentages for secondary class 1 contributions?

Answer 4

13.8% - threshold is £175 a week and £758 a month

Question 5

What is the rate for Class 2 NIC?

Answer 5

£3.45 a week

Question 6

What are the rates for Class 4 NIC?

Answer 6

6% from £12,570 - £50,270
2% on profits beyond £50,270

Question 7

What NIC classes are for a self-employed person?

Answer 7

Class 4 and 2

Question 8

What NIC classes are for an employed person? By both employer and employee

Answer 8

Employer - Class 1 Secondary and 1A
Employee - Class 1 Primary