National Insurance contributions (UK)
UK National Insurance contributions are divided into classes with different payers and bases. The TX-UK June 2026–June 2027 syllabus includes Class 1 and Class 1A for employment and Class 4 for self-employment; it explicitly excludes Class 2. Employee Class 1 is generally collected through PAYE, employer contributions are separate, and Class 1A relates to applicable benefits. Rates, thresholds and exceptions must be checked for the relevant tax year.
Worked example
A person has both employment earnings and self-employed profits. Their Class 1 and Class 4 positions are considered separately under the rules and thresholds for the exam’s tax year.
Common mistake
Treating employer and employee contributions as the same charge, or importing old Class 2 rules into the stated TX assessment scope.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |