Continuing our series of basic informative articles Amanda Sullivan outlines the rules that apply for employee compulsory and voluntary National Insurance contributions (NICs)
The NICs charge on earnings operates independently of the income tax charge because it is based on different legislation and regulations. Similar concepts are used to determine income tax and NICs liability such as individual residence. However the differences in the two charges mean that employees who are not liable to UK income tax on their earnings may still be liable to Class 1 NICs (and vice versa).
It should be noted that the UK domestic NICs legislation is overridden by EC regulations and the UK's bilateral social security agreements.
Introduction
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Continuing our series of basic informative articles Amanda Sullivan outlines the rules that apply for employee compulsory and voluntary National Insurance contributions (NICs)
The NICs charge on earnings operates independently of the income tax charge because it is based on different legislation and regulations. Similar concepts are used to determine income tax and NICs liability such as individual residence. However the differences in the two charges mean that employees who are not liable to UK income tax on their earnings may still be liable to Class 1 NICs (and vice versa).
It should be noted that the UK domestic NICs legislation is overridden by EC regulations and the UK's bilateral social security agreements.
Introduction
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
