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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1 NICs : Earnings of employees and office holders : Council Tax, water or sewerage chages: Employer pays all or part of an employee's Council Tax, water or sewerage charges

If an employer pays all or part of an employee’s Council Tax and/or water or sewerage charges, the payment is earnings and NICs are due. The employer is simply meeting the employee’s debt.

See NIM02010 for the meaning of “earnings”.