NIC

NIC's payable by the employer are additional costs of employment and are therefore allowable deductions in deriving the adjusted trading profit of the business

Thankyou Sir! In case of class 1 Nic payable by employees and employers I saw a ques in exam kit in which the limits of 9500 and 8788 were converted into monthly limits because employee was employed for 4 months only from dec 20 to end of 20/21 tax year, so 792 and 732 were used instead. ?What do we do in such cases ? Also the same ques had a 2nd part in which the employee was taken up as a partner instead, but the limits were not converted into months there. ( Ques refrence - bpp rev kit 98 bayle)

Class 1 contribution limits re the employee are time apportioned for the period of employment as they are payable in relation to an earnings period which in our exam will be monthly. For the self employed the limit is simply annual and it does not matter how months within the tax year that the individual has traded