Under any circumstance, does the class 1 NIC primary become payable by the employer and not the employee??
Answer to Question 18(Flick Pick) in BPP Revision kit states that the employer is responsible for paying both class 1 primary and secondary NIC.
Please help!!
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NIC's
Class 1 NIC is paid by employee on cash earnings between £7,605 and £42,475 at the rate of 12% and anything above at the rate of 2% with no limit. These are payable when the employee is aged 16 and cease when the employee reaches 60 (women) and 65 (men).
Class 1 NIC is also paid by the employer on cash earnings above 7,488 at the rate of 13.8%. These are payable from employees 16th birthday but with no upper age limit.
Class 1A is then paid by the employer on taxable benefits provided to the employee at a rate of 13.8% of the value of the benefits.
The BPP question is stating correctly that the employer is "responsible" for actually paying over the NIC's that they the employer must pay (employer / secondary contributions) and it is also their responsibility to pay over the employee NIC's that they have collected at source along with PAYE from the employee's salary.
thank you so much!
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