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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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NIM12010 - Class 1: Calculating Class 1 NICs for Directors: Fees received by professional partnerships and other companies: Definition of company

Regulation 27(5) SSCR 2001

Regulation 27(1) SSCR 2001 refers to payments by a company, to or for the benefit of adirector, that can be excluded from Class 1 liability. “Company” is defined inregulation 27(5) as having the meaning given by section 832(1) and (2) ICTA 1988. Thatsection defines a company as:

  • any body corporate, or
  • unincorporated association

but excludes a partnership, local authority or local authority association.

This is a much wider definition than that in regulation 1(2) SSCR 2001, NIM12001, so that payments to directors of Building Societies orUnit Trusts can be excluded from Class 1 NICs if the other conditions are satisfied.