- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
Hello Sir I hopre youre doing good, could you please tell me why in the following kit ques they’ve not time apportioned the lower 8632 limit
Shona started in business on 1 January 2020 as a sole trader and prepared her first set of accounts for the 14 weeks to 5 April 2020. Her taxable trading profit for that period was £10,600.
What are Shona’s total national insurance contributions for the tax year 2019/20?ANS: Class 2 contributions 14 x £3.00 = 42
Class 4 contributions £(10,600 – 8,632) x 9%= 177
Total contributions= 219When computing the class 4 NIC liability of a taxpayer the calculation is based on the assessment for the tax year – and irrespective of whether that assessment is based on a profit period of 12 months or indeed 14 weeks we only use the annual limits in calculating the NIC liability
- You must be logged in to reply to this topic.