Question：Bertram is a director of Bulgaria Ltd. He is paid a salary of ?42,475.

　　The company pays Bertram a bonus of ?10,000 and a dividend of ?10,000.

　　Bertram must pay main rate National Insurance Contributions (at 12%) on:

　　A. The salary and the bonus.

　　B. The salary, bonus and dividend.

　　C. The salary and the dividend.

　　D. The salary only.

　　The correct answer is: The salary only.

　　解析：NICs are payable on salary and bonus.

　　However, there is an upper limit for employees of ?42,475 for main rate contributions.

　　Bertram will therefore pay main rate NICs on his salary, but the bonus is above the upper limit, so only additional rate contributions will be payable on it.

　　NICs are not payable on dividends.