Hello,
you mention that NIC1 is based on cash earnings. If somehow in the question there is also a personal contribution, occupational pension scheme or a PAYE figure . Do we have to deduct these from the cash earnings ?
Also, for NIC2 we pay 2.85 pounds / week for all the trading profit and not what exceeds the threshold of 6025 pounds?
Thank you
Ask the Tutor ACCA TX-UK
NIC calculation
The cash earnings is the gross figure before deductions that are allowable for income tax purposes like a pension contribution and of course before the income tax (PAYE) figure itself.
Yes it is a single amount per week irrespective of excess above small profits threshold - it is the Class 4 figure that is linked to the level of profit
Thank you very much for the answer
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