When calculating class1 NIC(secondary) why do we include the AMAP calculation?
Only the amount paid above 45p per mile would be included
What is the reason for that?
Tax is not a subject where every rule has a why! The rules are created by people – different people may create different rules. Here however it would be otherwise easy to avoid Class 1 NIC by simply reducing the salary and instead paying a hugely inflated mileage rate. It’s a cash payment made above the exempt benefit level it is therefore not only chargeable to income tax but also to class 1 NIC
Going forward at this level – I advise you to learn the rules rather than asking why.
Is it compulsory to deduct employment allowance while calculating class 1 secondary
Only if calculating the TOTAL amount payable by the employer for all employees – you do not deduct when simply computing the amount payable in respect of one of the employees
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