The Different Types of NICS:
|CLASS 1 |
|CLASS 1 EMPLOYER||CLASS 1A EMPLOYER||CLASS 2 SELF EMPLOYED||CLASS 4 SELF EMPLOYED|
|PAYABLE ON||GROSS CASH EARNINGS||GROSS CASH EARNINGS||TAXABLE BENEFITS GIVEN TO EMPLOYEE||FLAT RATE ABOVE PROFIT THRESHOLD||TAX ADJUSTED TRADING PROFITS AFTER TRADING LOSSES|
|PAYABLE WHEN||16 YRS – STATE PENSION AGE||16 YRS OR OVER||16 YRS OR OVER||16 YRS – STATE PENSION AGE||16 YRS – STATE PENSION AGE AT START OF TAX YEAR|
|RATE||12% ON EARNINGS BETWEEN £9,501 – £50,000. 2% ABOVE £50,000||13.8% ABOVE £8,788||13.8%||£3.05 PER WEEK IF TAX-ADJUSTED TRADING PROFITS ABOVE £6,475||9% BETWEEN £9,500 AND £50,000. 2% ABOVE £50,000|
|DUE||PAYE: 22ND OF EACH MONTH||PAYE: 22ND OF EACH MONTH||22ND JULY AFTER THE TAX YEAR||31 JANUARY FOLLOWING TAX YEAR UNDER SELF-ASSESSMENT||PAYMENT ON ACCOUNT (POA): 31 JAN IN TAX YR, 31 JULY AFTER TAX YEAR AND 31 JAN AFTER TAX YEAR.|
NOTE: CLASS 4 NICS are BEFORE deducting the PERSONAL ALLOWANCE and are paid at the same time as the individual pays their INCOME TAX. Hence they will be paid under PAYMENT ON ACCOUNT rules, if these apply.
NIC Employment Allowance – Employer Class 1
Employers can claim up to £4,000 tax relief per annum, which can be set off against their EMPLOYER’S CLASS 1 NIC contributions ONLY.
This relief is NOT available to COMPANIES where a DIRECTOR is the ONLY EMPLOYEE.