Basic principles: how to work out the deemed payment: step six
Paragraph 7 Schedule 12 Finance Act 2000/Section 54(1) ITEPA 2003
Regulation 7(1) SI 2000 No.727
Where the intermediary has already paid any secondary Class 1 and/or Class 1A NICs for that year in respect of the worker’s earnings or benefits in kind, then a deduction is given for the amount in question at Step Six. However, this deduction can only be made where the NICs have been paid. So, if the Class 1 and/or Class 1A NICs are due but have not been paid, then no deduction can be made.
Relief for the amount of secondary Class 1 NICs on the deemed payment is given at Step Eight. See ESM8220.