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For 2014 kit Question 1:
If Styrax saved income tax 20%, NIC4 9%, he would also save the NIC1 13.8%*(20%+9%)=4%
How to understand 13.8%*(20%+9%)=4%?
well I can explain maths:
13.8%*(20+9%)=13.8%*29%
convert percentages into decimals:
0.138*0.29
=0.04
convert into percentage
=4%Yes, thanks. I understand the calculation process. I just don’t understand the function logic.
For an self employer, he should deduct the NIC1 secondary (13.8%) which is deductive before income tax and NIC 4.
Therefore i am not quite sure the logic of function 13.8%*(20%+9%)=4% is right or not. since the logic of this function seems to indicate 13.8% is after income tax and NIC4
@yyjie you have valid point there, will revert if I get the answer, lets chase till resolution.
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