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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Employment income
There’s a que no. 104 (George) in BPP kit where the employee incurs expense of 3600 for purchasing computer to use 100% for his job purposes. This 3600 is deductible expense from employment income for IT calculation.
However it is written that for NIC purposes, This 3600 will no be deducted from employment income and NIC (class 1 employee) will be payable on whole 40000 employment income.
My ques is ..NIC is calculated as a % of net income..then why 3600 is not allowable expense from employment income for NIC purposes ?
Class 1 NIC is based on gross employment income