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Employment allowance NIC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Employment allowance NIC

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarTax Tutor.
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  • March 3, 2019 at 10:24 am #507265
    Avatarscarleto
    Member
    • Topics: 7
    • Replies: 5
    • ☆

    Dear Sir,

    Why in Kaplan Revision Kit for April ’18 – March ’19, in question 57 p. 17, there is no application of employment allowance for employer (Dibbit Ltd) paying in rspect of it’s employees earnings? The result shows that class 1 NIC payable by Dibbit Ltd will be 5856 GBP. Is there any reason why we could not deduct further 3000 GBP from that amount as annual employment allowance and the employer would then pay only 2856 GBP?

    Thank you in advance for response.

    March 6, 2019 at 4:39 am #507913
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    I do not have the Kaplan material to check the question and answer, but has the question simply asked you to calculate the employers’ NIC in relation to one employee rather than the the total amount for the year payable by the company for all its employees?

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