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NIC please answer urgent!!!!!

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › NIC please answer urgent!!!!!

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
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  • Author
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  • March 1, 2021 at 7:53 am #612232
    huda131
    Member
    • Topics: 8
    • Replies: 7
    • ☆

    Bob is an employee of Dibbit Ltd and is paid an annual salary of 50000. He makes contribution of 3000 into company’s occupational pension Scheme each year .
    in the tax year 2019/20 he Drove 12,000 business miles in his own car for which he was paid 50p per mile by Dibbit Ltd
    How much employer class 1NIC is dibbit LTD required to pay in respect of bob for the Tax year 2019?
    Doubt : in the answer they have calculated the excess mileage allowance as(12000*(50p-45p))=600
    the Excess allowance I am getting is
    12000*50p-((10000*45p)+(2000*25p))=1000
    Y aren’t they considering the 25p over 10000 miles?

    March 1, 2021 at 1:03 pm #612331
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    You are applying the Employment Income rule – the rule for NIC is simpler, we just use the 45p rate irrespective of mileage

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