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self-employed and employer NIC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › self-employed and employer NIC

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by JillyB.
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    Posts
  • September 18, 2024 at 12:31 pm #711553
    alawi sayed
    Participant
    • Topics: 314
    • Replies: 365
    • ☆☆☆☆

    Hi Jilly,

    For the following the question asked for NIC of Reberto who is trading .So here upon knowing that he is trading so which NIC we will choose The self-employed ones( class 2 & class 4) or the
    the ones for employer (class 1)
    based on which point we can choose

    For my knowledge I come to know that as he is a trader so he is self employed

    but if he was paying for the employee contribution then we should choose the Class1 -employer NIC

    is that okay.

    Thanks

    Roberto has been trading for many years. His tax-adjusted trading profits for 2023-24 are £25,000.

    What is the total amount of national insurance contributions payable by Roberto for the tax year 2023-24?

    A.£1,119
    B.£1,298
    C.£2,250
    D.£2,429
    The correct answer is B.

    £
    Class 2: 52 × £3.45 179
    Class 4: 9% (£25,000 ? £12,570) 1,119
    1,298

    September 19, 2024 at 3:34 pm #711572
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    Emplyees pay class 1 – self emplyed class 2 and 4 – as clearly laid out in the NIC chapter

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