Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
, see all updates

Alternative rights of recovery (PAYE directions): primary class 1 NICs: background: expenses and allowances

Regulation 25 and Schedule 3 to the Social Security (Contributions) Regulations 2001 provide for certain payments to be disregarded from liability for Class 1 NICs.

For the purpose of this manual, payments derived from employment that are made to cover personal expenses are gains, or benefits, to the employee and as such are earnings unless they are specifically excluded by any other provision in Schedule 3 SSCR 2001.