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Hello, I have a small question, For employee, is NIC Class1 calculated on final Employment income we get after Deducting all those Benefits and Allowable deductions? or Separately for salary and then Taxable benefits?
Please clarifiyAnd also the Class4 of Self Employed, Is it also calculated on Final trading profit figure we get in Income tax computation after Adjusting it for Taxation and deducting Capital allowances from it?
Class 1 Employee contributions are paid on salary and any other cash payments (for example a bonus) paid to the employee. This excludes assessable benefits and is before deduction of allowable expenses. Employers pay Class 1A contributions on assessable benefits.
Class 4 contributions paid by the self employed are indeed based on the adjusted trading profit assessed for the relevant tax year
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