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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1 NICs: earnings of employees and office holders: retirement benefits schemes from 6th April 2006: employer-financed pension only schemes: payments out of such schemes

Paragraphs 9(1)(b) and 10 of Part 6 of Schedule 3 to the Social Security(Contributions) Regulations 2001 (as inserted by regulation 8(7) of the Social Security(Contributions) (Amendment No. 2) Regulations 2006)

The conditions that need to be satisfied for a payment out of an employer-financedpension only scheme (“EFPOS”; NIM02795) to bedisregarded in the calculation of earnings are the same as those apply to a payment out ofan employer-financed retirement benefits scheme (“EFRBS”; NIM02756).So you should follow the guidance in NIM02760 (contents) -NIM02784, but reading any reference to an ERFBS as if it were a reference to an EFPOS.

For details of:

  • the Class 1 NICs position on an employer’s payments into an EFPOS, see NIM02796
  • the Class 1A NICs position on a payment out of an EFPOS, see NIM14510.