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HMRC internal manual

National Insurance Manual

Class 1 NICs: reporting NICs in RTI: recovery of primary NICs from the employee

Social Security (Contributions) Regulations Schedule 4, paras 6 and 7

An employer may deduct the value of the primary NICs due to be paid from an employee’s earnings.

If an employer fails to deduct the correct amount of primary NICs at the time the payment of earnings is made, then the employer may deduct them from a subsequent payment of earnings provided the following conditions are met:

  • the employer can prove that the under-deduction was a result of an error made in good faith
  • the extra deduction is no greater than the amount due from the subsequent payment
  • the deduction can only be made during the tax year the mistake occurred, or the following tax year.

See also NIM01022 for when employees become liable for their own NICs.