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Class 1 employee NIC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Class 1 employee NIC

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Tax Tutor.
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  • August 24, 2020 at 7:12 am #581696
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Dear Tax tutor,

    Sir if an individual has worked with the company only for 6 months then his class 1 emplyee threshold will fall to 8632*6/12=4316 and 50000*6/12=25000, right??

    August 24, 2020 at 5:48 pm #581796
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Yes – in real life there are both weekly and monthly limits as well as annual (used in the exam) and NIC will be computed based on the earnings period of the employee – ie are they paid weekly or monthly.
    We just time apportion the annual figures as you state

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