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HMRC internal manual

National Insurance Manual

Class 1 NICs: reporting NICs in RTI: secondary contributor

Social Security (Contributions) Regulations 2001, Schedule 4, Para 1

For reporting NICs data under RTI, the employer is the secondary contributor determined by the above legislation.

The secondary contributor is:

  • for an earner employed under a contract of service, his employer (except where regulations prescribe otherwise (see below))
  • for an office-holder, a prescribed person or the person or body responsible for paying the earnings
  • the person specified by Social Security (Categorisation of Earners) Regulations 1978, Schedule 3 - for these special cases, see details in the Employment Status Manual
  • for a mariner, the person prescribed by regulation 122.

For more information, see NIM33710.

Succession to business

Social Security (Contributions) Regulations 2001, Schedule 4, para 28

Where there’s been a change in the employer in respect of an employment, the new employer becomes responsible for reporting NICs.

This is particularly relevant under ‘end of year’ reporting because it makes the new employer responsible for the end of year return. It ensures a succeeding employer fulfils reporting obligations for Class 1A.