- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
Tax Tutor.
Tax Tutor.-
Posts
-
firelion28
- Topics: 159
- Replies: 83
- ☆☆☆
hi,
the threshold for NIc is that uptil 8060 there is no nic contribution, and then upto 43000, there is 12%, suppose if an employee works for only 9 months and the profit for those 9 months is 12000 , wont they threshhold be 9/12 * 8060=6045 and then so it should be 12000-6045 and then we pay 12% on the remaining !
hoever in the bpp even if the employee works for 9 months, they removie the entire 8060 for the year. It really doesnt make any sense to mecan u explain sir
thanks
Tax Tutor
- Topics: 2
- Replies: 3965
- ☆☆☆☆☆
Firstly re your question above the employee does not have “profits” but has employment income upon which NIC will be charged. In practice NIC are computed on either a weekly basis or monthly basis depending on whether the employee is paid weekly or monthly – the employee’s earnings period – for which there are weekly and monthly lower and upper profit limits to be used. The F6 syllabus however only includes the annual limits and the annual calculations
Tax Tutor
- You must be logged in to reply to this topic.