SADDLE: LO5 NI, PAYE, and Business Insurance D2

Who is liable to pay National Insurance Contributions (NICs)?

• Only employees

• Only self-employed workers

• Both employees and self-employed workers

• Only employers

What are Class 2 National Insurance Contributions (NICs) for the current tax year?

• £3.45 per week

• £12,570 or more

• 9% on all earnings between £12,570 and £50,270

• 2% on any earnings above £50,270

What is the purpose of PAYE?

• To collect income tax and National Insurance from employees

• To provide free healthcare

• To fund the State Pension

• To deduct employee benefits and student loan repayments

Who is legally obliged to operate PAYE?

• All self-employed individuals

• All employers

• All employees

• All business owners

What is the purpose of Public Liability Insurance?

• To cover compensation and legal fees if an employee gets hurt

• To cover legal costs and compensation if you cause an accident at work

• To protect against loss if your premises and contents are affected by damage

• To cover potential claims by unhappy clients

What does Professional Indemnity Insurance protect against?

• Loss of documents or data

• Negligence and breach of duty of care

• Accidental infringement of intellectual property

• All of the above

When do you need Business Vehicle Insurance?

• If you own a car

• If you use your car for business-related activities

• If you have colleagues on board with you

• If you regularly drive to different locations for work

What does Business Interruption Insurance cover?

• Compensation and legal fees if an employee gets hurt

• Losses due to unforeseen events that stop trading

• Legal costs and compensation if you sell faulty goods

• Losses due to damage to your premises and contents

What is the purpose of Employers' Liability Insurance?

• To cover compensation and legal fees if an employee gets hurt

• To cover legal costs and compensation if you cause an accident at work

• To protect against loss if your premises and contents are affected by damage

• To cover potential claims by unhappy clients

What is the purpose of Product Liability Insurance?

• To cover compensation and legal fees if an employee gets hurt

• To cover legal costs and compensation if you sell faulty goods

• To protect against loss if your premises and contents are affected by damage

• To cover potential claims by unhappy clients