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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Removal benefits and expenses: General

NIM06115 onwards provides detailed guidance on the treatment for Class 1 NICs purposes of removal expenses and allowances. It also explains that from 6 April 2000 Class 1A NICs may be due on

  • non-qualifying removal benefits,
  • certain non-qualifying removal expenses, and
  • on any amount of a relocation package which exceeds £8,000.To understand the interaction of Class 1 and Class 1A NICs liability on relocation packages familiarise yourself with the Class 1 NICs position before giving consideration to whether, and to what extent, a Class 1A NICs liability also arises. The differences which exist between the tax and Class 1 NICs treatment of removal expenses has a direct bearing on the amount of Class 1A NICs employers are liable to pay on the relocation packages they provide.

For guidance on

  • removal benefits and expenses and Class 1A NICs before 6 April 2000, see NIM16255
  • removal benefits and expenses and Class 1A NICs from 6 April 2000, see NIM16260 onwards.