Question 3 Dokham (Kaplan Kit)

This topic has 3 replies, 3 voices, and was last updated 7 years ago by frafiq81.

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October 9, 2018 at 9:49 am #476920
frafiq81
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Hi,

For part (a) NIC is also considered, is it because the EMI scheme is assumed to be not approved by HMRC?

Thanks.
October 9, 2018 at 4:12 pm #476960
akka17bakka
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Hi,

Have you had a look at the topic NIC contributions?
I would suggest you go through it once again.

Just a point from the topic, For class 4 NIC, 2% on profits in excess of £45,000.

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God bless.
October 10, 2018 at 6:38 am #477009
sabrina006
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Basically there is no NIC on approved EMI Scheme. But in that question, dokham was granted share at a price which is lower then market/current prices, therefore the difference is charged to IT & NIC.
October 10, 2018 at 12:01 pm #477041
frafiq81
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@sabrina006 does it mean that where it is not mentioned if the scheme is approved or not then we should assume that it is an approved scheme?

On page 68 of kaplan text, note 2 for tax approved scheme mentions about income tax charge for options granted on discount and does not mention about NIC. Maybe its assumed that since there would be income tax charge so NIC would also be payable?

Thanks
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