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Hello.
I’ve watched your lectures on NIC but still has some issues understanding some the basics
What NIC is all about? Is it a tax that need to be paid by an employee/employer or some contribution that need to be made?Please re-explain it.
Thanks
It is a tax which as you will see in the notes and lectures is organised in different sections – classes.
Chapter 11
Section 1.1 – Class 1 NIC paid by employers and employees
Section 1.2 – Class 1A NIC paid by employers
Section 3.1 – Class 2 NIC paid by the self employed
Section 3.2 – Class 4 NIC paid by the self employedIn the notes and lectures we then show how to calculate each class of NIC. Not that you will be tested on this but the original purpose was to fund state benefits – as an “insurance” against illness and unemployment and then to fund retirement pensions and other benefits.
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