Task 7 - National Insurance Conts
Options
cat3591
Registered Posts: 1
in Personal Tax
If you are given the amount of Class 1 contributions being paid by the individual, how do you calculate backwards to work out how much employer class 1 contributions will be paid? Thanks
0
Comments
-
Split the tax into 12% and 2%
(Tax above 4956.96 will have been taxed at the 2% rate)
Divide the two taxes by their rate.
LR/0.12 = Tax on lower amount
HR/0.02 = Tax on higher amount
Add them together and add on the 0% amount. (If you are in the higher rate this can also be done as 50,000 + (amount taxed at higher rate))
Take off the employer 0% tax (Is currently slightly lower than employee)
Multiply by 13.8%AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021
SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 220 -
Hello, I've tried that for this question but my answer is way too high:
Albi's only employees are Bart & Sonny. Albi's Class 1 NI contributions in 2020/21 are £140 & £6,129 respectively.
Total employee class 1 NI contributions payable by Albi in 2020/21 : The correct answer is £2269
Please could someone explain how to get there?
0 -
Is it because they claimed the £4k Employers N/I allowance?0
-
Ah, I see what you mean. You are right, thank you.
I thought the amounts given were the employee NI and that I had to work it back to their salary to calculate the employers NI.
This is simpler.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 264 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 45 AAT Level 3 Diploma in Accounting
- 66 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership