Personal Tax - NIC contributions question
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VijiVijins
Registered Posts: 9
in Personal Tax
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.
I dont understand what (£962-£183 ) x 12% x 1 week relates to.
0
Comments
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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 receivedAAT Level 4, MAAT
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