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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1: Treating as paid: Status of treated as paid NICs

Regulation 60, Social Security (Contributions) Regulations 2001

NIM12111 explains that the above regulation allows for unpaid primary Class 1 NICs to be treated as paid in certain circumstances, but only for the purpose of entitlement to contributory benefit.

Because the NICs are “treated as paid” rather than actually having been paid to HMRC, they cannot have been paid into the NI Fund. This means that they cannot

  • be refunded, either in whole or in part; or
  • be included as paid in any calculation of overall NICs liability. For example, where payment of some NICs has been deferred and a review of overall NICs liability is required, any primary Class 1 NICs that have been treated as paid must not be included in the calculations.

It should be noted however, that the earnings associated with NICs that are treated as paid can be allowed to trigger the payment of minimum contributions to pension providers. This is because it is the earnings that trigger the minimum contribution and not the payment of NICs