ACCA Applied Skills · Taxation (UK) · National insurance contributions for employed and self-employed persons
Nadia earns a salary of £10,000 in 2025/26 from Orrin Ltd. What is her Class 1 employee NIC for the year?
Nadia pays no Class 1 employee NIC. Her £10,000 salary is below the £12,570 annual threshold, and the rate on earnings up to that level is nil.
- A£800
- B£0Correct
- C£200
- D£243
Explanation
Earnings of £10,000 are below the £12,570 threshold, where the rate is nil. Therefore no employee NIC is due. £800 wrongly applies 8% to all earnings.
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