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NIC question from Kaplan

Forums › ACCA Forums › ACCA TX Taxation Forums › NIC question from Kaplan

  • This topic has 1 reply, 1 voice, and was last updated 5 years ago by kellypreston.
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  • February 20, 2020 at 3:10 pm #562509
    kellypreston
    Participant
    • Topics: 7
    • Replies: 9
    • ☆

    The question is:
    Bob is an employee of Dibbit Ltd, and is paid an annual salary of £50,000. He makes contributions of £3,000 into the company’s occupational pension scheme each year. In the tax year 2018/19 he drove 12,000 business miles in his own car for which he was paid 50p per mile by Dibbit Ltd.
    How much employer’s class 1 NICs is Dibbit Ltd required to pay in respect of Bob’s earnings and reimbursed mileage for the tax year 2018/19?
    The Answer
    (50,600 – 8,424) @ 13.8% = 5,820
    Workings for 50,600:
    Salary 50,000
    Plus: Excess Mileage (12,000 x (50p-45p)) = 600.

    My question is why is it 50p – 45p? Because I thought mileage was 10,000 @45p and anything above at 0.25p

    February 20, 2020 at 3:11 pm #562510
    kellypreston
    Participant
    • Topics: 7
    • Replies: 9
    • ☆

    **Sorry just 45p and 25p**

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