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HMRC internal manual

National Insurance Manual

Class 1 NICs : Earnings of employees and office holders : Introduction

Earnings which an employed earner receives from an office or employment are liable for the payment of Class 1 NICs (see NIM01000).

Section 3(1)(a) of the Social Security Contributions and Benefits Act 1992 defines what are earnings for the purposes of NICs (see NIM02010), and section 6(1) of the same Act prescribes the circumstances in which Class 1 NICs are payable on any such earnings (see NIM02015).

Liability for Class 1 NICs arises only if a payment of earnings is made “to or for the benefit of an earner”. Liability arises at the time the earnings are paid.