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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!!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.
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