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Nic contribution

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Nic contribution

  • This topic has 1 reply, 2 voices, and was last updated 4 months ago by AmandaP.
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    Posts
  • October 31, 2025 at 9:51 pm #723409
    M.Haris
    Participant
    • Topics: 31
    • Replies: 14
    • ☆

    Esmerelda is an employee who earns an annual salary of £60,000 throughout the tax year 2024-25.

    X

    What is the total class 1 contributions due on Esmerelda’s salary and benefits?

    A. £13,080
    B. £11,824
    C. £3,211
    D. £10,235
    If data for class 1 A nic was given(non cash benefits) would we add them in class 1 contribution as answer for this question is 10235

    November 1, 2025 at 8:43 pm #723425
    AmandaP
    Moderator
    • Topics: 1
    • Replies: 181
    • ☆☆

    Yes, if the question includes the amount of the taxable benefits, then you would include the amount of Class 1A in the total amount of Class 1 NIC due. Bear in mind that it would be a separate calculation (i.e. not added to the salary) as employees pay Class 1 Primary, and employees pay Class 1 Secondary on cash remuneration, but only employers pay Class 1A.

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