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Dear Sir,
I am trying to solve BPP mock paper-2, there is Bayle question,
My question is that
should i apportioned 4/12 month or use full £8060 for Class 4 NIC ? because
as per bpp answer -When calculated class 1 NIC as employee for 4 month salary, £8060 threshold apportioned 4/12 month but when calculated class 4 NIC as a partner for 4 month profit, £8060 threshold is not apportioned,Thank you,
Class 4 NIC is payable on the tax adjusted trading profit of the business assessed in the tax year irrespective of how long the profit period may be, whereas with Class I NIC there are in addition to the annual figures that we use in the F6 exam, weekly figures and monthly figures which are applied according to the earnings period of the employee ie whether they are paid paid weekly or monthly. As this is not in the syllabus we simply need to time apportion the annual figures where employment income is received for less than 12 months as you state it is done in the BPP answer.
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