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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1A National Insurance contributions: Special Class 1A NICs cases: Fees and Subscriptions to professional bodies or learned societies

Section 10(9)(a) SSCBA 1992 and paragraph 40(1) and 40(2)(d) SS(C)R 2001Class 1A NICs are excepted from payments for fees and subscriptions to professional bodies or learned societies where

  • the employer contracts direct to provide membership for his employees; and
  • the fee or subscription is fully excluded from tax liability by virtue of section 343 or 344 of ITEPA 2003 (before 6 April 2003 – section 201 of ICTA 1988).
  • Where
  • the employer contracts direct to provide membership to professional bodies or learned societies for his employees; and
  • the fee or subscription is not exempted from tax liability by virtue of section 343 or 344 of ITEPA 2003 (before 6 April 2003 – section 201 of ICTA 1988)Class 1A NICs are due on the amount of general earnings chargeable to income tax under ITEPA 2003 (before 6 April 2003 – the emoluments chargeable to income tax under Schedule E).

  • See NIM05695 for the treatment of fees and subscriptions which an employee pays for and is later reimbursed by his employer.See EIM32880 (before 6 April 2003 – see SE32880) for general guidance on sections 343 and 344 of ITEPA 2003 (before 6 April 2003 - section 201 of ICTA 1988).