Personal Tax - NIC contributions question

VijiVijins
VijiVijins Registered, AAT Student Posts: 9
Hi guys, wonder if you could help me with the attached please. It is from Kaplan Personal Tax book.
I dont understand what (£962-£183 ) x 12% x 1 week relates to.




Comments

  • Pian32
    Pian32 MAAT Posts: 448
    It's to do with the weekly threshold for NI. You pay £0 NI on the first £183 a week 12% up to £962 a week.

    So the NI on the bonus in the last week is:
    (£183 - £0)*0*1 (number of weeks applied)
    (£962-£183) * 12% * 1 =93.48
    (£10250-£962) * 2 * 1 = 185.76

    The income for the other weeks doesn't reach this threshold so only goes up to the £250 that is received
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  • VijiVijins
    VijiVijins Registered, AAT Student Posts: 9
    Piant32, many thanks!
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