TX - Pension & NIC

Lorna has the choice of being either employed or self‐employed. If employed, Lorna’s gross

annual salary for the tax year 2024/25 will be £36,000. If self‐employed, Lorna’s trading profit

for the year ended 5 April 2025 will be £36,000.

How much more national insurance contributions will Lorna suffer for the tax year 2024/25

if she chooses to be employed rather than self‐employed?

• £2,808

• £2,306

• £468

During the tax year 2024/25, Amari was paid a gross annual salary of £60,000 and made an

occupational pension contribution of £6,000. He also received taxable benefits valued at

£5,900.

What amount of employee class 1 national insurance contribution (NICs) will have been

suffered by Amari for the tax year 2024/25?

• £3,211

• £3,522

• £2,311

• £1,112

Efe is a director of Mulch Ltd, and is paid an annual salary of £60,000. During the tax year

2024/25 he also received an annual bonus of £3,000 and free meals in the workplace

canteen, open to all staff, at a cost of £1,040 to his employer.

What amount of employee class 1 national insurance contribution (NICs) will have been

suffered by Efe for the tax year 2024/25?

• £3,271

• £3,354

• £3,031

• £4,034

Isak is an employee of Dibbit Ltd, and is paid an annual salary of £50,000. He makes

contributions of £3,000 into the company’s occupational pension scheme each year.

In the tax year 2024/25 he drove 12,000 business miles in his own car for which he was paid

50p per mile by Dibbit Ltd.

How much employer’s class 1 NICs is Dibbit Ltd required to pay in respect of Isak for the

tax year 2024/25?

• £4,253

• £5,727

• £6,238

• £1,246

Elsa is employed by Bee Ltd. During the tax year 2024/25, Bee Ltd provided Elsa with the

following benefits:

1 A private gym membership

2 A contribution of £1,800 into a private pension scheme.

Elsa had use of the private gym membership throughout the tax year. The normal

membership fee is £1,000, but Bee Ltd negotiated a discount and paid £900 for it.

What amount of class 1A national insurance contributions (NICs) are payable by Bee Ltd in

respect of Elsa for the tax year 2024/25?

• £124

• £138

• £373

• £386

Red Dolphin Ltd provided the following benefits to its employee, Alonso, for the tax year

2024/25:

Cost

£

Cash vouchers 3,000

A gift of a new television 2,000

Red Dolphin Ltd always pays its tax liabilities and national insurance contributions (NIC)

electronically. The benefits provided to Alonso were not payrolled.

Indicate, by selecting the relevant boxes in the table below, the correct amount of class 1A

NIC payable by Red Dolphin Ltd in respect of Alonso's benefits for the tax year 2024/25 and

the due date of payment.

• £276

• £546

• £846

• £694

On which TWO of the following benefits is class 1A NIC payable by Broadman Ltd?

• Occupational pension scheme contributions of 5% of the employees’ salaries

• Payment for a parking space in a public car park near the office

• Annual summer event costing £200 per head

• Provision of a smart phone for business and private use including the cost of private

  calls

• Membership of local sports club at a cost of £400 per annum

Paloma has been trading for a number of years. Her tax adjusted trading profit for the year

ended 31 March 2024 was £57,200 and for the year ended 31 March 2025 was £58,000.

What is the amount of class 4 national insurance contributions (NIC) payable by Paloma for

the tax year 2024/25?

• £2,678

• £2,726

• £2,401

• £2,417

Raj is self‐employed and his trading profit for the tax year 2024/25 is £52,000. Raj also had

property income of £5,200 from furnished holiday accommodation for this tax year.

What are Raj's class 4 national insurance contributions for the tax year 2024/25?

• £3,155

• £2,297

• £3,051

• £2,401

Roger is employed on an annual salary of £145,000. His employer has an occupational

pension scheme into which Roger pays 2% of his salary and the company pays 5% of his

salary. Roger also made a payment of £20,000 into a personal pension scheme in the tax year

2024/25.

What is Roger’s net income (before deducting the personal allowance) for the tax year

2024/25?

• £142,100

• £543,244

• £158,729

• £586,489