Guidance

How an employer operates a National Insurance only scheme

Information about when an employer can operate a National Insurance contributions (NICs) only scheme and reporting the payroll.

NICs only employment schemes are set up by an employer when payment of Class 1 National Insurance only is due.

How to register

You should register by phone or post.

Contact HM Revenue and Customs - they’ll arrange for someone to call you back to help you register.

What to report

When completing a Full Payment Summary (FPS), where earnings are subject to NICs only, you must:

  • report the ‘Gross earnings for NICs in this period’ and all appropriate NICs data
  • enter zeros in the ‘Taxable pay’ and associated tax fields
  • enter code NT in the ‘Tax code’ field on the FPS as this is a mandatory field

If you realise that you’ve made a mistake and you have included details in the taxable pay and tax fields you should correct the error by entering zeros in the taxable pay and associated tax fields on your next FPS.

Help and advice

Contact the Employer helpline or Customer Operations Employer Office

Published 22 September 2014