National Insurance Contribution

This topic has 3 replies, 3 voices, and was last updated 12 years ago by Amarain.

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October 26, 2013 at 2:59 pm #143777

dizfaris
Participant

Hi,

I am a bit confused for NIC. Lets say NIC Class 1 employer. Is the rate for each salary or the aggregate amount of the salary ?
For example Tesco has 2 employee with a salary of £7,000 each. How many NIC Tesco has to pay ?

Option 1 : NIL because for the each salary is not over the 7488

Option 2: the agrregate amount of salary are £14,000, therefore the salary from £7489 to £14,000 is tax @ 2% ?

Thank you.

October 26, 2013 at 4:09 pm #143781

Tax Tutor
Member

Employer’s NIC are based on each employee’s salary so option 1 is your answer. Also remember that if an employee’s salary exceeds 7488 the employer rate is 13.8%

October 26, 2013 at 4:32 pm #143784

dizfaris
Participant

Thank you.. 🙂

Is the same principle applies to NIC Class 2 & 4 ?

Eg: same person has 2 separate business ? Therefore 2 separate NIC rate ?

November 13, 2013 at 4:43 pm #145844

Amarain
Member

Yes, NICs are calculated on an individual basis
A
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