66. December 2016 OT question
Sanjay commenced trading on 1 January 2021 and prepared his first set of accounts for the six month period ended 30 June 2021. His second set of accounts were prepared for the year ended 30 June 2022.
Sanjay’s tax adjusted trading profits were:
Six month period ended 30 June 2021 £8,800
Year ended 30 June 2022 £24,400
What are the class 4 national insurance contributions (NICs) which Sanjay should pay in respect of the tax year 2021/22?
ANS
£1,035
1.1.21 – 31.12.21 £
6 months ended 30 June 2021 8,800
6 months to 31 December 2021 (6/12 × £24,400) 12,200
–––––––
Assessable profits 21,000
–––––––
Class 4 NICs
(£21,000 – £9,568) × 9% 1,029
Good day, please i don't understand how the final answer of 1035 was calculated because when i solved the question i got 1029 as the final answer. I'll appreciate if you can explain better.
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NATIONAL INSURANCE
Hi Eunice
Where did you get this question from?
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