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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1A National Insurance contributions: Liability for Class 1A NICs: Person liable to pay Class 1A NICs: General

Section 10(2) SSCBA 1992The person liable to pay Class 1A NICs is

  • the person who is liable to pay secondary (employer) Class 1 NICs on the last or only relevant payment of earnings to an earner in the tax year in which the benefit is provided, or if there is no Class 1 NICs liability, because a relevant payment of earnings has not been made, the person who would have been liable if the benefit provided had itself been a payment of earnings. An exception to this general rule occurs where a benefit or non-cash voucher is provided to an employed earner by someone other than his or her employer - usually called a third party benefit, see

NIM16350. In the remainder of this guidance, a person’s employer is assumed to be the person liable to pay Class 1A NICs unless otherwise stated.

Guidance on what is meant by a “relevant payment of earnings” is contained at NIM13111.